Regional Environmental Policy and the Distribution of Economic Impacts among Rural Households

1995 ◽  
Vol 27 (4) ◽  
pp. 645-662 ◽  
Author(s):  
K Wernstedt
Keyword(s):  
Environmental Policy ◽  
Pacific Northwest ◽  
Economic Impacts ◽  
Time Frame ◽  
Final Demand ◽  
Input Output ◽  
Price Changes ◽  
Long Run ◽  
Short Run ◽  
Demand Changes

In this paper a regional input-output model is used to evaluate the distribution of short-run and long-run economic impacts of regional level environmental policy decisions among urban and rural household income classes. Both demand and price changes are analyzed. Demand changes are modeled as increases in final demand, and price changes are analyzed as exogenous shocks. In the short run, regional prices do not respond to the exogenous price shocks but, in the long run, the regional prices can vary following input substitution in a Cobb-Douglas production function. An income allocation matrix distributes to income classes the wage and nonwage income changes generated by the input-output formulations. A case study is presented that involves efforts to enhance fish populations in the Columbia River Basin in the US Pacific Northwest. The policy analysis shows that the type of initial policy impact (change in final demand or in prices) as well as the time frame considered (short or long run) can influence the final distribution of economic impacts among urban and rural income classes. The approach outlined here thus allows decisionmakers to explore several aspects of the income effects of a project across disaggregated segments of an affected population.

scholarly journals Determinants of Inflation in the Local Economy

ETIKONOMI ◽  
2018 ◽  
Vol 17 (1) ◽  
pp. 1-10
Author(s):  
Jaka Sriyana
Keyword(s):  
Exchange Rate ◽  
Minimum Wage ◽  
Inflation Rate ◽  
Local Level ◽  
Price Change ◽  
Local Economy ◽  
Price Changes ◽  
Vector Error Correction ◽  
Long Run ◽  
Short Run

This research analyzes the determinants of inflation rate in the local economy. It uses co-integration and vector error correction to capture the long and short run relationship between inflation rate and other economic variables. We find that the determinants of inflation rate in Yogyakarta are minimum wage, economic growth, and monetary variables indicated by BI-rate.  More finding, exchange rate also contributes to the price change. This research finds evidence of long-run causality between minimum wage and inflation and unidirectional relationship from wage to inflation in the short run. This finding confirms the proposition of non-neutrality wage on price changes. The inflation rate in the local economy depends not only on the regional indicator but also depends on international changes reflected in the exchange rate. Monetary variable indicated by BI- rate also partially contributes to the price changes at the local level. Overall, the local government has successfully managed the price changes.DOI: 10.15408/etk.v17i1.7146

scholarly journals Evaluating the Short- and Long-run Economic Impacts of the Virginia-Maryland Regional College of Veterinary Medicine

2001 ◽  
Vol 33 (1) ◽  
pp. 49-57
Author(s):  
Binzhang Liu ◽  
Shukla Kshirsagar ◽  
Thomas Johnson ◽  
Craig Thatcher ◽  
George W. Norton
Keyword(s):  
Veterinary Medicine ◽  
Economic Impacts ◽  
Demand Estimation ◽  
Output Analysis ◽  
Earnings Differentials ◽  
Economic Surplus ◽  
Input Output Analysis ◽  
Long Run ◽  
Regional College ◽  
Short Run

AbstractColleges of veterinary medicine are often asked to provide evidence of the economic impacts of their activities. This paper presents methods for evaluating a veterinary college and applies them to the Virginia-Maryland Regional College of Veterinary Medicine. It assesses short-run impacts on income and employment using input-output analysis. Long-run benefits are estimated using a combination of economic surplus analysis, travel cost analysis and demand estimation, animal-owner willingness-to-pay based on a survey of practicing veterinarians, and earnings differentials.

scholarly journals Export Tax Reform and the Competitiveness of Imported Soybeans in China

2019 ◽  
Vol 51 (3) ◽  
pp. 511-525 ◽  
Author(s):  
Andrew Muhammad ◽  
Constanza Valdes
Keyword(s):  
United States ◽  
Tax Reform ◽  
The United States ◽  
Import Demand ◽  
Chinese Market ◽  
Long Run ◽  
Export Tax ◽  
Export Taxes ◽  
Short Run ◽  
Demand Changes

AbstractExport tax reform in Argentina could improve its competitiveness in China’s soybean market, displacing exports from competing countries like Brazil and the United States. We examined the factors that determine China’s demand for imported soybean products and how export taxes could affect exporting countries. Using import demand and vector autoregression estimates, we conducted simulations of China’s import demand assuming the elimination of export taxes in Argentina. Results indicated that Argentine soybean products could realize gains in the Chinese market, but only in the short run. Projected import demand changes in the long run were insignificant for all exporting countries.

Asymmetric effects of oil price changes on the Nigerian exchange rate

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Patrick Onodje ◽  
Temitope Ahmdalat Oke ◽  
Oluwatimilehin Aina ◽  
Nazeer Ahmed
Keyword(s):  
Exchange Rate ◽  
Time Series Data ◽  
Oil Price ◽  
Series Data ◽  
Price Changes ◽  
Content Type ◽  
Asymmetric Effects ◽  
Wald Tests ◽  
Long Run ◽  
Short Run

Purpose The purpose of this paper is to examine the effect of crude oil prices on the Nigerian exchange rate with emphasis on discriminating between the effects of positive and negative changes in oil price on exchange rate. Design/methodology/approach The authors used monthly time series data from 1996:1 to 2019:6 and adopted two oil price measures, namely, Brent crude and West Texas Intermediary prices. For analysis, the authors used stepwise least squares to estimate a non-linear ARDL (NARDL) model and Wald tests to determine cointegration and the presence of asymmetric effects. Findings The findings showed that positive and negative Brent crude price changes significantly affect exchange rates differently in nominal terms, both in the long-run and short-run. However, the differences were purely in terms of effect size because the exchange rate decreased for both negative and positive oil price changes. Originality/value Whilst empirical research on asymmetries in the effect of oil price on exchange rate abounds, little evidence exists in Nigeria’s case. Although some studies previously tested for asymmetric oil price effects on the Nigerian currency, the approach used did not estimate long and short-run effects or test of long-run and short-run asymmetries. This paper fills this methodological gap using monthly using the NARDL approach. The NARDL approach provided the advantage of estimating effects for the long-run and short-run and testing for asymmetries in both time spans.

Effects of Crude Oil and Gold Prices on US Stock Market: Evidence for USA from ARDL Bounds Testing

2018 ◽  
Vol 3 (1) ◽  
Author(s):  
AKM Matiur Rahman ◽  
Muhammad Mustafa
Keyword(s):  
Stock Market ◽  
Crude Oil ◽  
Bounds Testing ◽  
Negative Effects ◽  
Price Changes ◽  
Stock Market Returns ◽  
Crude Oil Prices ◽  
Long Run ◽  
Ardl Bounds Testing ◽  
Short Run

<p>This paper explores the effects of changes in crude oil and gold prices on US Stock market movement. Daily data are used from the first business day of January, 1986 through December30, 2016. Efficient unit root tests (DF-GLS and Ng-Perron) are applied to examine the time series property of the variables in terms of stationarity or non-stationarity.  ARDL Bounds Testing is applied for co-integration. Both DF-GLS and Ng-Perron tests confirm non-stationarity of each variable and depict I (1) behavior of all the variables in log-levels, included in this study. The ARDL-Bounds testing confirm co-integration among the variables. There is evidence of long-run convergence among all these variables with very tepid adjustment toward the equilibrium. Short-run negative effects of changes in gold and crude oil prices on US stock market returns are observed. The effect is statistically significant from gold price changes, but insignificant from crude oil price changes.</p>

Oil Market Developments and Issues

Policy Papers ◽  
2005 ◽  
Vol 2005 (01) ◽  
Author(s):  
Keyword(s):  
Supply And Demand ◽  
Oil Price ◽  
Policy Response ◽  
Price Changes ◽  
Oil Market ◽  
Price Increases ◽  
Long Run ◽  
Short Run

The discussion in this paper of the causes and consequences of recent oil price increases, and the appropriate policy response, is framed by the volatility and uncertainty that characterize the oil market. Volatile prices arise from supply and demand that are both highly inelastic in the short run, with the result that even small shocks can have large effects on price. The difficulty of predicting long-run supply and demand creates uncertainty about future prices. Further, even current supply and demand data are lacking, which results in additional uncertainty. These features of uncertainty and volatility of prices make it difficult to reach simple conclusions about how oil producers and consumers should respond to price changes.

Are Mergers Beneficial to Consumers? Evidence from the Market for Bank Deposits

2003 ◽  
Vol 93 (4) ◽  
pp. 1152-1172 ◽  
Author(s):  
Dario Focarelli ◽  
Fabio Panetta
Keyword(s):  
Market Power ◽  
Strong Evidence ◽  
Empirical Literature ◽  
Price Changes ◽  
Bank Deposits ◽  
Long Run ◽  
Price Effects ◽  
Short Run ◽  
Power Effect ◽  
Market Consolidation

The general conclusion of the empirical literature is that in-market consolidation generates adverse price changes, harming consumers. Previous studies, however, look only at the short-run pricing impact of consolidation, ignoring effects that take longer to materialize. Using a database that includes detailed information on the deposit rates of individual banks in local markets for different categories of depositors, we investigate the long-run price effects of mergers. We find strong evidence that, although consolidation does generate adverse price changes, these are temporary. In the long run, efficiency gains dominate over the market power effect, leading to more favorable prices for consumers.

scholarly journals Dynamic Adjustment of U.S. Agriculture to Energy Price Changes

2010 ◽  
Vol 42 (2) ◽  
pp. 289-301 ◽  
Author(s):  
David K. Lambert ◽  
Jian Gong
Keyword(s):  
Cost Function ◽  
Energy Price ◽  
Energy Prices ◽  
Input Price ◽  
Dynamic Adjustment ◽  
Agricultural Producers ◽  
Price Changes ◽  
Long Run ◽  
Short Run ◽  
Over Time

Energy prices increased significantly following the first energy price shock of 1973. Agricultural producers found few short run substitution possibilities as relative factor prices changed. Inelastic demands resulted in total expenditures on energy inputs that have closely followed energy price changes over time. A dynamic cost function model is estimated to derive short and long run adjustments within U.S. agriculture between 1948 and 2002 to changes in relative input prices. The objective is to measure the degree of farm responsiveness to energy price changes and if this responsiveness has changed over time. Findings support inelastic demands for all farm inputs. Statistical results support moderate increases in responses to energy and other input price changes in the 1980s. However, demands for all inputs remain inelastic in both the short and long run. Estimation of share equations associated with a dynamic cost function indicates that factor adjustment to input price changes are essentially complete within 1 year.

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