Derivation of regional shadow prices

[Hurter and Moses, 1964] presented a solvable model combining input-output analysis and linear programming to derive regional product ’shadow’ prices. Their measure of prices is incomplete since it includes only regional variation-in transport and resource costs and not the intermediate product costs. The reason for this exclusion is obvious: product prices are needed to obtain intermediate product costs. In this note we extend the Hurter-Moses model to derive a full measure of regional shadow prices.     

Corporate carbon risk exposure,voluntary disclosure,and financial reporting quality

The study examines whether corporate carbon risk exposure is associated with financial reporting quality and whether voluntary carbon disclosure mediates the relationship. We analyze data drawn from firms traded on the Johannesburg Stock Exchange (JSE), for the period 2011 to 2015. We document robust evidence that firms with higher carbon risk exposure tend to provide financial statements of poorer quality (i.e., direct effect) and this association is partially mediated through voluntary carbon disclosure (i.e., indirect effect). The overall negative association between corporate carbon risk exposure and the firm's financial reporting quality is partly explained by the quality of voluntary carbon disclosure.     

The Union Pacific/Southern Pacific Railroads Merger: Effect of Trackage Rights on Rates

We investigate the impact of the 1996 UP/SP railroads merger on rail rates for potential 2-to-1 shippers. As part of its merger conditions, the Surface Transportation Board (STB) granted trackage rights to BNSF to preserve competition for these shippers. Using the STBs Carload Waybill Sample data for the Salt Lake City economic area, we found that the remedy was effective—BNSF provided more effective competition to UP in the post-merger era than SP did in the pre-merger era. The results, however, differed by commodity, direction of traffic, and shipper-type.     

Projections of oil demand in road transportation sector on the basis of vehicle ownership projections,worldwide: 1972–2020

Oil demand in the road transportation section accounts for more than 50% of total world oil consumption amongst the whole sectors, including road, aviation, railway, waterways and international marine transportation. The high demand rate of oil makes this sector the main and major oil consumer in the world. The vehicle ownership or intensity of vehicles is one of the main factors which determines the development of oil demand in this major sector.Vehicle ownership (in 1000 population) is estimated using the nonlinear Gompertz model on the basis of pooled time series (1972–2020) and cross-sections data for 154 countries. Different saturation levels for the selected countries and over time horizon is calculated by adding specific demographic and geographic variables. Then, under two different scenarios – business as usual and policy scenario – we make projections of oil demand in the road transportation sector across 154 countries by using available data up to 2020.According to the results of the model, it is predicted that the number of world total vehicles will be approximately 1.5 times higher in 2020 than in 2008. Moreover, oil demand projections for road transportation over 2009–2020 show that under business as usual scenario, world oil demand will increase to 14,748 million barrel of oil equivalent until 2020 while under the policy scenario, which is based on the fuel efficiency improvement by 20% during a period of 10 years until 2020, world oil demand in the aforementioned sector will increase only to 11601 mboe until 2020.     

Did the banking sector foresee the financial crisis? Evidence from risk factor disclosures

Review of Quantitative Finance and Accounting - Beginning in December 2005, the SEC required registrants to discuss “the most significant factors that make the company risky” under the...     

A Synthetic Approach to Projecting Input–Output Tables

This paper describes an approach used in the Canadian input–output (IO) accounts, which seeks to enhance the timeliness of the tables. It combines traditional updating methods, balancing techniques and the most recent data. To assess the performance of this approach, aggregate estimates from the synthetic accounts are presented for two years, and compared with estimates from benchmarks and with estimates obtained from a mechanical estimation technique. The results show that most IO components can be estimated with a relatively small estimation error and that substantial accuracy is gained from using the synthetic approach compared with a mechanical technique. Results based on data which are two years away from IO benchmarks are obtained at the cost of large errors. Synthetic estimates of the IO accounts improve the timeliness problem by at least a full year.