We develop a theoretical model of long-run investment decisions on capacity in the context of a liberalized electricity … the level of capacity that maximizes social welfare, and compare it to a decentralized outcome. We show that in the … absence of any regulation, private investment decisions on capacity unambiguously lead to a socially sub-optimal outcome, and …

In this paper, we model natural gas market volatility using GARCH-class models with long memory and fat …-tail distributions. First, we forecast price volatilities of spot and futures prices. Our evidence shows that none of the models can … the stylized fact of fat-tail distributions into account. Second, we forecast volatility of basis defined as the price …

Volatility features of the Nordic day ahead power spot market for a 12-year period up till May 2004 are studied. The … daily logarithmic volatility was measured for this period to be about 16%. This level is well above what is observed for … most other well-studied financial markets. Volatility clustering, log-normal distribution, and long-range correlations are …

intersections on the capacity of the bus. Both the case of a bus stop with a special stopping lane and that of one without are … considered. The capacity versus the distance LB(LD) between the stop and the upstream (downstream) intersection is studied, with … as a bottleneck and cause a drop in the capacity when the LB (or LD) is below a critical point LBc1(or LDc1). However …

a model in which facilities can produce output at a privately known cost up to a previously-determined capacity level …. In such a model, the amount of slack in the firm is shown to be pro-cyclical. Indeed, as capacity constraints become … capacity. …

This paper compares how cash and in-kind transfers affect local prices. Both types of transfers increase the demand for … normal goods, but only in-kind transfers also increase supply. Hence, in-kind transfers should lead to lower prices than cash …

This Paper documents four basic facts about investment goods and investment prices. First, investment has a very …