In this paper a model, based on the nested multinomial logit model, is used to analyze airport competition and airline competition in a multiple airport region. It is shown that if the frequency elasticity of demand is smaller than 1, airfare-frequency and airport tax equilibria exist and are...

In this paper we present an exact maximum likelihood treatment forthe estimation of a Stochastic Volatility in Mean(SVM) model based on Monte Carlo simulation methods. The SVM modelincorporates the unobserved volatility as anexplanatory variable in the mean equation. The same extension...

This paper studies urban sustainability from the perspective ofexternalities. We develop a general spatialequilibrium model of a monocentric city, in which two types ofexternalities occur. On the one hand, pollution inthe industrial centre leads to a spatially differentiateddeterioration of the...

Price elasticities of transport demand are an important tool toassess the impacts of pricing policies. Empirical research on these elasticitiesleads to a rather wide range of outcomes. There is obviously a need for a morerigorous methodological framework. This paper provides a new...

In this paper we compare the predictive abilility of Stochastic Volatility (SV)models to that of volatility forecasts implied by option prices. We develop anSV model with implied volatility as an exogeneous var able in the varianceequation which facilitates the use of statistical tests for...

This paper introduces and surveys ecological-economic analysis ofbiodiversity. It seeks to identify the complex linkages betweeneconomic and ecological systems with a view to a solid exploration ofvaluation issues in biodiversity. Against this background the studyoffers a review of key...

After the Kyoto agreements the need has arisen to trace the implications ofvarious international environmentalstrategies. In this paper, we discuss relevant modelling issues ofincorporating important environmental policy measures in one ofthe popular applied general equilibrium models for...

Accident costs are an important component of the external costs of traffic, a substantial part of whichis related to fatal accidents. The evaluation of fatal accident costs crucially depends on theavailability of an estimate for the economic value of a statistical life. The aim of the...

Convergence in gross domestic product series of five European countriesis empirically identified using multivariate time series models that arebased on unobserved components with dynamic converging properties.We define convergence in terms of a decrease in dispersion over timeand model this...