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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 …
Persistent link: https://www.econbiz.de/10005792333
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. …
Persistent link: https://www.econbiz.de/10005114255
Following a Supreme Court decision in 1954, natural gas markets in the U.S. were subject to 35 years of intensive federal regulation. Several studies have measured the deadweight loss from the price ceilings that were imposed during this period. This paper concentrates on an additional component...
Persistent link: https://www.econbiz.de/10005791833
Inaccurate measures of the aggregate price level may distort short-run policy decisions and may produce misleading comparisons of productivity growth across decades and among nations. Primarily intended for non-US readers, this paper serves the dual purpose of reviewing compactly the vast US...
Persistent link: https://www.econbiz.de/10005504571
This paper examines the extent to which the destination of exports matters for the input prices paid by firms, using … destinations and find that exporting to richer countries leads firms to charge more for outputs and pay higher prices for inputs …
Persistent link: https://www.econbiz.de/10011083348
Using annual data from several sources, we study the evolution of M1, M2, income, prices and long and short interest … rates in Ireland over the period 1933-2012. We find cointegration and that prices, income and interest rates are weakly …
Persistent link: https://www.econbiz.de/10011084447
Persistent link: https://www.econbiz.de/10004992964
This Paper documents four basic facts about investment goods and investment prices. First, investment has a very …
Persistent link: https://www.econbiz.de/10005662174
In this paper simulation methods are employed on a two-country, rational expectations continuous-time model to explore the consequences of asymmetrical wage-price processes. As an additional feature the effects are explored of reductions in the degree of financial integration between the two...
Persistent link: https://www.econbiz.de/10005662381
Changes in the price of nontradable goods relative to tradable goods account for roughly 50% of the cyclical movements in real exchange rates.
Persistent link: https://www.econbiz.de/10005666669