This article lays down economic principles that should govern electricity transmission pricing when peak-load pricing is used to set tariffs. Transmission systems perform three different functions: to transport energy, to substitute for generation capacity, and to increase competition in the...

The paper analyzes calling party pays access pricing policies in a General Equilibrium two ways access charge model with consumers that choose between different telecommunication providers, and benefit from making calls to other consumers and from the calls that they receive. We obtain that...

In this paper we characterize equilibria in a quantity game where symmetric firms face a local demand together with an export-constrained demand. Firms have unlimited access to a local demand but a restricted access to a second market, like in the electricity network where generators compete to...

The static production efficiency model and the dynamic duality model of intertemporal decision making using a parametric approach have been continuously developed but in separate direction. The parametric approach takes statistical noise into account, which consequently provides accurate...

Rational beliefs (in the form of WAMS measures) are expectations which though consistent with empirical observations, may deviate from the true underlying probability measure under which data is generated.We provide results on, as well as a decomposition of, WAMS measures and use this to...

This paper provides a general approach in the framework of a complete markets stochastic overlapping generations model to assess whether debt Ponzi schemes are feasible and Pareto-improving. We derive conditions in terms of bond interest rates of different maturities which can be used to assess...

When asset markets are incomplete there are almost always many Pareto improving policy interventions. Remarkably, these interventions do not involve adding any new markets. Focusing on tax policy, I create a framework for proving the existence of Pareto improving taxes, for computing them, and...

Rational beliefs (in the form of WAMS measures) are expectations which though consistent with empirical observations, may deviate from the true underlying probability measure under which data is generated.We provide results on, as well as a decomposition of, WAMS measures and use this to...

Valuation of the benefits from the preservation of water resources is often of interest to policy makers and funding institutions. In developing countries, valuation studies are potentially useful for designing funding policies when inequality is a concern. To fulfil this goal, however,...

This paper studies the probability of survival of the manufacturing plants that start producing in Chile in the period 1979-1999 using a proportional hazards model. Opposing previous empirical international evidence, the survival diminishes with age, initial size, and with the rate of growth of...