ENERGY IN A MODEL OF FIRM ENTRY

2018 ◽  
Vol 24 (2) ◽  
pp. 231-254
Author(s):  
Soma Patra

Nine out of the last ten recessions in the United States have been preceded by an increase in the price of oil as noted by Hamilton [Palgrave Dictionary of Economics]. Given the small share of energy in gross domestic product this phenomenon is difficult to explain using standard models. In this paper, I show that firm entry can be an important transmission and amplifying channel for energy price shocks. The results from the baseline dynamic stochastic general equilibrium (DSGE) model predict a drop in output that is two times the impact in a model without entry. The model also predicts an increase in energy prices would lead to a decline in real wages, investment, consumption, and return on investment. Additionally, using US firm level data, I demonstrate that a rise in energy prices has a negative impact on firm entry as predicted by the DSGE model. This lends further support toward endogenizing firm entry when analyzing the effects of energy price shocks.

Green Finance ◽  
2021 ◽  
Vol 3 (4) ◽  
pp. 383-402
Author(s):  
Yilin Wu ◽  
◽  
Shiyu Ma ◽  

<abstract> <p>With the COVID-19 pandemic sweeping the world, the development of China's energy industry has been hampered. Although previous studies have shown the global influence of COVID-19 on energy prices and macroeconomic indicators, very few of them examined the impact on China independently, considering the special role of China in this pandemic and economy. In this study, we investigate the impact of the pandemic on several major China energy prices using the ARIMA-GARCH model. Combined with the Value-at-Risk (VaR) theory, we further explore the market risk, which indicates an increase in the tail risk of energy price volatility and the dramatic turbulence in energy markets. In addition, a Vector Autoregressive (VAR) model is developed to analyze how the main macroeconomic indicators are affected when energy prices fluctuate. According to the model results, energy price fluctuations caused by the COVID-19 have a negative impact on economic growth and inflation, with a higher contribution to the latter changes. Based on the modeling analysis results, this paper makes constructive suggestions on how to stabilize energy prices and recover the economic development in the context of the COVID-19 pandemic.</p> </abstract>


2008 ◽  
Vol 46 (4) ◽  
pp. 871-909 ◽  
Author(s):  
Lutz Kilian

Large fluctuations in energy prices have been a distinguishing characteristic of the U.S. economy since the 1970s. Turmoil in the Middle East, rising energy prices in the United States, and evidence of global warming recently have reignited interest in the link between energy prices and economic performance. This paper addresses a number of the key issues in this debate: What are energy price shocks and where do they come from? How responsive is energy demand to changes in energy prices? How do consumer's expenditure patterns evolve in response to energy price shocks? How do energy price shocks affect U.S. real output, inflation, and stock prices? Why do energy price increases seem to cause recessions but energy price decreases do not seem to cause expansions? Why has there been a surge in the price of oil in recent years? Why has this new energy price shock not caused a recession so far? Have the effects of energy price shocks waned since the 1980s and, if so, why? As the paper demonstrates, it is critical to account for the endogeneity of energy prices and to differentiate between the effects of demand and supply shocks in energy markets when answering these questions.


Energies ◽  
2020 ◽  
Vol 13 (23) ◽  
pp. 6300
Author(s):  
Honorata Nyga-Łukaszewska ◽  
Kentaka Aruga

The COVID-19 pandemic storm has struck the world economies and energy markets with extreme strength. The goal of our study is to assess how the pandemic has influenced oil and gas prices, using energy market reactions in the United States and Japan. To investigate the impact of the COVID-19 cases on the crude oil and natural gas markets, we applied the Auto-Regressive Distributive Lag (ARDL) approach to the number of the US and Japanese COVID-19 cases and energy prices. Our study period is from 21 January 2020 to 2 June 2020, and uses the latest data available at the time of model calibration and captures the so-called “first pandemic wave”. In the US, the COVID-19 pandemic had a statistically negative impact on the crude oil price while it positively affected the gas price. In Japan, this negative impact was only apparent in the crude oil market with a two-day lag. Possible explanations of the results may include differences in pandemic development in the US and Japan, and the diverse roles both countries have in energy markets.


Südosteuropa ◽  
2020 ◽  
Vol 68 (4) ◽  
pp. 505-529
Author(s):  
Kujtim Zylfijaj ◽  
Dimitar Nikoloski ◽  
Nadine Tournois

AbstractThe research presented here investigates the impact of the business environment on the formalization of informal firms, using firm-level data for 243 informal firms in Kosovo. The findings indicate that business-environment variables such as limited access to financing, the cost of financing, the unavailability of subsidies, tax rates, and corruption have a significant negative impact on the formalization of informal firms. In addition, firm-level characteristics analysis suggests that the age of the firm also exercises a significant negative impact, whereas sales volume exerts a significant positive impact on the formalization of informal firms. These findings have important policy implications and suggest that the abolition of barriers preventing access to financing, as well as tax reforms and a consistent struggle against corruption may have a positive influence on the formalization of informal firms. On the other hand, firm owners should consider formalization to be a means to help them have greater opportunities for survival and growth.


2021 ◽  
Vol 2021 (23) ◽  
pp. 237-250
Author(s):  
Anatolii Morozov ◽  
◽  
Tetiana Morozova ◽  
Inessa Rutkovska ◽  
◽  
...  

Introduction.The main environmental risks posed by roads are population depletion (deaths on roads) and barrier effects (habitat fragmentation). Barrier effects - animals avoid crossing roads, which leads to a decrease in the size and quality of habitat, optimal population size, reduced ability to find food and partner, increased genetic structuring and local extinction (Forman et al. 2003; Andrews et al. 2015; van der Ree et al. 2015). These risks against the background of other stressors, in particular the presence of invasive species, pollution, pesticide use, climate change, plant and animal diseases, may threaten the survival of populations.This issue is especially relevant for herpetofauna due to their biological characteristics. In particular, reptiles and amphibians move slowly, are too small (for drivers to see), do not avoid roads, and in cold periods roads attract amphibians (thermoregulation) because the coating absorbs and retains heat (Case and Fisher 2001; Jochimsen et al. 2004).The principle of ensuring ecological continuity is to identify priority efforts to mitigate environmental risks for animals and reduce the negative impact of the transport complex as a spatial barrier and source of pollution by introducing a number of technical means (eco-crossings, screens, embankments, landscaping). As it is not possible to change the environmental risks on all roads and for all species at present, it is necessary to identify the most vulnerable species, assess the risks to populations and the need for mitigation based on analysis of road density and traffic intensity.Problem Statement. With the advent of land transport there was a progressive environmental problem - the transformation of landscapes, it first appeared in countries with developed road infrastructure in Western Europe and the United States, and quickly spread around the globe (Ellenberg, et al., 1981; Fetisov, 1999; Zagorodnyuk, 2006, Ilyukh, Khokhlov, 2012). Numerous publications by both foreign and domestic authors are devoted to the study of the impact of transport infrastructure. Special attention of European authors is paid to the study of the phenomenon of fragmentation of natural ecosystems. In Europe, there is a network of experts and institutions of IENE, which is studying the possibility of implementing preventive measures for landscape fragmentation, promotes the development of transport infrastructure in accordance with environmental requirements, by creating a safe, environmentally sustainable European transport infrastructure.The ecological trail of the road network significantly exceeds its length (Vozniuk, 2014). This is due to the effects of, in particular, mortality on the roads of mammals, reptiles, reptiles (Forman et al. 2003), landscape fragmentation (roads divide the area into isolated areas, with low populations (sometimes below the minimum), so such populations lose genetic diversity and may become extinct locally), the loss of habitats of species and a decrease in the level of connectivity. In addition to these obvious effects, noise and vibration pollution are added, which inhibit the ability of reptiles, birds and mammals to detect prey or avoid predators (Forman et al. 2003), disturbed light regime (Rich and Longcore 2006). Roads contribute to the development of soil erosion processes, the spread of invasive and introduced species (300-800 seeds/m2 per year are transported to roadside ecotones by vehicles (Von der Lippe and Kowarik 2007), which contributes to the formation of local pseudo-populations), create obstacles and sources. (Forman et al. 2003).Purpose. Substantiation of the principle of ecological continuity regarding the negative impact of transport infrastructure on natural ecosystems and search for possible ways to minimize and prevent such impact.Materials and methods. The main research methods are the application of theoretical general scientific approaches to study: analysis and synthesis of international and domestic scientific and theoretical works, EU documentation (charters, design requirements), Ukrainian legal framework, literature sources; collection and analysis of statistical data to identify the dangers of the impact of road infrastructure on biodiversity and determine the value of the natural landscape.Results. The result is an analysis of the scientific literature on the negative impact of transport infrastructure on animals, systematization of the main impacts for the preparation of methodological documents for organizations planning and designing transport infrastructure in Ukraine to reduce the negative impact.Conclusions. The principle of ensuring ecological continuity is to minimize the negative consequences for the environment. In particular, by leveling the spatial barrier of the public highway. When laying a road through natural ecosystems, it is necessary to build transitions and passages for animals. In this case, their density and type must correspond to the natural rank of the territory. The construction of crossings for animals should be mandatory for all types of roads that cross ecological corridors. This is especially true for smaller roads, completely devoid of any transitions for animals, noise shields (on such roads are more likely to hit animals). An important point is the need to plan preventive methods at the planning stage of road construction. The analysis of the European experience shows that the negative impact of transport infrastructure on biota can be solved by consolidating the efforts of road transport specialists and specialists in the field of nature protection.Keywords:motor road,wildlife crossing, biodiversity, road infrastructure, ecological continuity


2021 ◽  
Vol 16 (5) ◽  
pp. 886-892
Author(s):  
Angela M. Haeny ◽  
Samantha C. Holmes ◽  
Monnica T. Williams

With the increased desire to engage in antiracist clinical research, there is a need for shared nomenclature on racism and related constructs to help move the science forward. This article breaks down the factors that contributed to the development and maintenance of racism (including racial microaggressions), provides examples of the many forms of racism, and describes the impact of racism for all. Specifically, in the United States, racism is based on race, a social construct that has been used to categorize people on the basis of shared physical and social features with the assumption of a racial hierarchy presumed to delineate inherent differences between groups. Racism is a system of beliefs, practices, and policies that operate to advantage those at the top of the racial hierarchy. Individual factors that contribute to racism include racial prejudices and racial discrimination. Racism can be manifested in multiple forms (e.g., cultural, scientific, social) and is both explicit and implicit. Because of the negative impact of racism on health, understanding racism informs effective approaches for eliminating racial health disparities, including a focus on the social determinants of health. Providing shared nomenclature on racism and related terminology will strengthen clinical research and practice and contribute to building a cumulative science.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asier Minondo

Purpose This paper aims to analyze the impact of COVID-19 on the trade of goods and services in Spain. Design/methodology/approach This paper uses monthly trade data at the product, region and firm level. Findings The COVID-19 crisis has led to the sharpest collapse in the Spanish trade of goods and services in recent decades. The containment measures adopted to arrest the spread of the virus have caused an especially intense fall of trade in services. The large share of transport equipment, capital goods, products that are consumed outdoors (i.e., outdoor goods) and tourism in Spanish exports has made the COVID-19 trade crisis more intense in Spain than in the rest of the European Union. Practical implications The nature of the collapse suggests that trade in goods can recover swiftly when the health crisis ends. However, COVID-19 may have a long-term negative impact on the trade of services that rely on the movement of people. Originality/value It contributes to understand how COVID-19 has affected the trade in goods and services in Spain.


2021 ◽  
pp. 145-159
Author(s):  
Т. Д. Polidi ◽  
A. Y. Gershovich

The article presents the results of an operational assessment of the impact of the COVID-19 crisis on the change in the gross urban product (GUP) in 17 metropolitan areas of Russia with a population of more than 1 million people in 2020. The goal of the authors was to try to answer the most actual questions nowadays (early 2021): how deep was the fall of the largest agglomerations economies in Russia and abroad; did the corona crisis have a more negative impact on the largest metropolitan areas then on the rest of the economy? In order to answer these questions, two main tasks were: 1) to assess GUP in 17 largest metropolitan areas of Russia; 2) to consider foreign estimates of the GUP in 2020. For foreign comparisons, the authors use the first published data on changes in GDP and gross urban/regional product in the United States, Canada and Australia. The assessment of GUP in this work is carried out through the assessment of the component of employee compensation and then the transition to the GUP indicator on the assumption that such a ratio of compensation of employees to GDP in a city equals the average of the said ratios for the 17 metropolitan areas. The assessment showed that the real GDP growth rates in 2020 were negative not in all metropolitan areas, and in most of them economic losses turned out to be less than those of the Russian economy as a whole.


2021 ◽  
pp. 232949652110246
Author(s):  
Raphaël Charron-Chénier ◽  
Louise Seamster ◽  
Thomas M. Shapiro ◽  
Laura Sullivan

Student debt in the United States has had a disproportionate negative impact on black and Latinx borrowers. We argue that analyses of plans proposing student debt cancellation should therefore foreground their potential impact on racial equity. To do so, we use data from the 2019 Survey of Consumer Finances and model the impact of debt cancellation on four key policy outcomes (reach, impact on the most vulnerable borrowers, borrower wealth gains, and impact on racial wealth gaps). We examine universal policy designs as well as designs that incorporate an income eligibility threshold as a means of targeting benefits toward less affluent borrowers. We find that cancellation amounts ranging from $50,000 to $75,000 yield the most desirable outcomes, especially when paired with a relatively low household income eligibility cutoff at between $100,000 and $150,000. Such policies would cancel roughly half of all outstanding student debt without substantially expanding the racial wealth gap, while still reaching a large majority of borrowers and leading to substantial wealth gains, especially for black households.


2020 ◽  
Vol 12 (9) ◽  
pp. 3574 ◽  
Author(s):  
Mar Llorente-Marrón ◽  
Montserrat Díaz-Fernández ◽  
Paz Méndez-Rodríguez ◽  
Rosario González Arias

The study of vulnerability constitutes a central axis in research work on sustainability. Social vulnerability (SV) analyzes differences in human capacity to prepare, respond and recover from the impact of a natural hazard. Although disasters threaten all the people who suffer from them, they do not affect all members of society in the same way. Social and economic inequalities make certain groups more vulnerable. Factors such as age, sex, social class and ethnic identity increase vulnerability to a natural disaster. Ten years after the earthquake in Haiti in 2010, this work deepens the relationship between natural disasters, SV and gender, exploring the unequal distribution of the SV in the face of a seismic risk. The source of statistical information has been obtained from the Demographic and Health Survey (DHS), developed by the United States Agency for International Development (USAID). Multicriteria decision techniques (TOPSIS) and the differences in differences (DID) technique are used to analyze variations in gender inequality in SV as a result of the catastrophic event. The results obtained reinforce the idea of the negative impact of the disaster on the SV. Additionally, an intensification of the negative effects is observed when the household is headed by a woman, increasing the gap in SV between households headed by women and the rest of the households. The conclusions obtained show additional evidence of the negative effects caused by natural disasters on women, and important implications for disaster risk management are derived that should not be ignored.


Sign in / Sign up

Export Citation Format

Share Document