Analysing the Finnish pulpwood market under alternative hypotheses of competition

2001 ◽  
Vol 31 (2) ◽  
pp. 236-245 ◽  
Author(s):  
A Maarit I Kallio
Keyword(s):  
Dynamic Models ◽  
Production Capacity ◽  
Perfect Competition ◽  
Forest Sector ◽  
Investment Behavior ◽  
Pulp Industry ◽  
Variable Capacity ◽  
Short Run ◽  
Alternative Hypotheses ◽  
Capacity Constrained

Efficient functioning of the wood market is crucial in a country where the forest sector is of strong macroeconomic importance. We investigate the possibility of noncompetitive behavior of the buyers in the Finnish pulpwood market. We simulate the buyers' behavior under alternative competition structures (perfect competition, Cournot oligopsony, and monopsony) and compare the simulated equilibria with the observed behavior in the years 1988–1997. In the static models the pulp industry firms are assumed to maximize their short-run variable profits either under fixed production capacity or, hypothetically, under variable capacity. The results suggest that, during the boom years, the industry has been capacity constrained, sometimes even for monopsony output. During the recession years, the actual wood prices have often been between simulated Cournot oligopsony and monopsony prices. Hence, noncompetitive behavior of the buyers is possible during the recessions. The capacity investment behavior of the industry is explored with dynamic models. The conclusions from these models depend on the price elasticity of pulpwood supply used.

Short-term influences on Canadian wood pulp prices and exports: a vector autoregression analysis

1996 ◽  
Vol 26 (4) ◽  
pp. 566-572 ◽  
Author(s):  
Janaki R.R. Alavalapati ◽  
Martin K. Luckert ◽  
Wiktor L. Adamowicz
Keyword(s):  
Exchange Rate ◽  
Vector Autoregression ◽  
Domestic Demand ◽  
Short Term ◽  
Macroeconomic Variables ◽  
Pulp Industry ◽  
Short Run ◽  
Dynamic Impacts ◽  
Pulp Processing ◽  
The U.S

The short-run dynamic impacts of macroeconomic variables on the Canadian pulp industry are investigated using the vector autoregression approach. The results show that shocks in the G10 exchange rate and the U.S. pulp price significantly affect Canadian pulp prices but not Canadian pulp exports. Short-term contracts, changes in the domestic demand for pulp, and limitations on pulp processing capacities are thought to be responsible for the limited responsiveness of pulp exports. The results also suggest that the indirect effect of shocks in the macroeconomy are important in explaining the dynamics of Canadian pulp price and pulp exports.

scholarly journals Integration and Behavior in the U.S. Winter Market for Fresh Tomatoes

1995 ◽  
Vol 27 (1) ◽  
pp. 127-137 ◽  
Author(s):  
Kenrick H. Jordan ◽  
John J. VanSickle
Keyword(s):  
Market Integration ◽  
Price Change ◽  
Price Formation ◽  
Long Run ◽  
Short Run ◽  
Alternative Hypotheses ◽  
Lagged Effects ◽  
Spatial Price ◽  
And Behavior ◽  
The U.S

AbstractAlternative hypotheses of market integration in the U.S winter market for fresh tomatoes were evaluated using a dynamic model of spatial price adjustment. The results showed that while Florida and Mexico were integrated in the same market, a price change in one area was not instantaneously reflected in the other. Lagged effects were important with long-run integration being supported for both Florida and Mexico and short-run integration for Mexico. However, the information flow, while relatively efficient, was not symmetric. Florida was found to be dominant in the price formation process with Mexico responding to changes in the Florida price.

scholarly journals Environmental pollution and economic growth elasticities of maritime and air transportations in Iran

2019 ◽  
Vol 2 (2) ◽  
pp. 114-123 ◽  
Author(s):  
Vahid Mohamad Taghvaee ◽  
Lotfali Agheli ◽  
Abbas Assari Arani ◽  
Mehrab Nodehi ◽  
Jalil Khodaparast Shirazi
Keyword(s):  
Economic Growth ◽  
Environmental Pollution ◽  
Dynamic Models ◽  
Air Transportation ◽  
Maritime Transportation ◽  
Transportation Mode ◽  
Economic Point ◽  
Content Type ◽  
Long Run ◽  
Short Run

Purpose The purpose of this paper is to examine the effects of maritime and air transportation on the environment and economy of Iran. The authors specify two dynamic models of the environmental pollution and the economic growth. Then, the authors estimate the environmental and economic elasticities of maritime and air transportation in short run and long run in Iran during 1978–2012. Design/methodology/approach The authors estimate the environmental and economic elasticities of maritime elasticities in short and long run, using simultaneous equations system. Findings The findings indicate that the short- and long-run environmental pollution elasticities of maritime transportation are higher than those of the air ones. In addition, the economic growth elasticities are greater in the air transportation compared to maritime one. As a result, the maritime transportation is more pollutant and less productive in Iran in comparison with the air transportation. Originality/value The policymakers are advised to improve the infrastructure of maritime transportation from both the environmental and economic point of views. Consequently, the air transportation is considered as a cleaner and more beneficial transportation mode in Iran, where geographical position limits the maritime transport as a widespread transportation mode.

scholarly journals Microeconomic aspects of government subsidies in the agricultural market

2012 ◽  
Vol 58 (No. 11) ◽  
pp. 542-548 ◽  
Author(s):  
L. Severová ◽  
J. Chromý ◽  
B. Sekerka ◽  
A. Soukup
Keyword(s):  
Large Scale ◽  
Agricultural Products ◽  
Perfect Competition ◽  
Agricultural Product ◽  
Actual Problem ◽  
Marginal Costs ◽  
Long Run ◽  
Price Subsidy ◽  
Short Run ◽  
The Government

It is known from the Czech practice that a very actual problem of economic policy is created by the subsidies on the prices of agricultural products. A price subsidy of agricultural product causes the price to be kept above its equilibrium level. We will use the microeconomic knowledge about the behaviour of average and marginal costs curves in the short-run and long-run. We assume two agricultural firms in a perfect competition market. The agricultural large-scale company reaches a normal profit, but the small family firm has higher costs, therefore it runs at a loss. Using the subsidy can ensure that the prices of agricultural products are set at a level, at which the farmers have appropriate incomes. However, a loss of efficiency can occur because of the subsidy as the surplus, which is purchased by the government, and actually stays unused.  

Credit Crises, Precautionary Savings, and the Liquidity Trap*

2017 ◽  
Vol 132 (3) ◽  
pp. 1427-1467 ◽  
Author(s):  
Veronica Guerrieri ◽  
Guido Lorenzoni
Keyword(s):  
Interest Rates ◽  
Durable Goods ◽  
Market Model ◽  
Precautionary Savings ◽  
Consumer Spending ◽  
Heterogeneous Agent ◽  
Liquidity Trap ◽  
Short Run ◽  
The Interest Rate ◽  
Capacity Constrained

Abstract We study the effects of a credit crunch on consumer spending in a heterogeneous-agent incomplete-market model. After an unexpected permanent tightening in consumers’ borrowing capacity, constrained consumers are forced to repay their debt, and unconstrained consumers increase their precautionary savings. This depresses interest rates, especially in the short run, and generates an output drop, even with flexible prices. The output drop is larger with sticky prices, if the zero lower bound prevents the interest rate from adjusting downward. Adding durable goods to the model, households take larger debt positions and the output response can be larger.

scholarly journals DYNAMIC MODEL OF A SOCIALLY RESPONSIBLE ENTERPRISE POTENTIAL

2018 ◽  
pp. 245-252
Author(s):  
Liudmyla Potrashkova
Keyword(s):  
Differential Equations ◽  
Dynamic Models ◽  
Production Capacity ◽  
Causal Chain ◽  
System Of Differential Equations ◽  
Socially Responsible ◽  
Proposed Model ◽  
Environmental Projects ◽  
Environmental Measures ◽  
The Impact

Introduction. Socially responsible measures, which are implemented by the enterprise, launch a complex chain of cause and effect links in the resource system of the enterprise. Therefore, to analyse the impact of such measures on the dynamics of enterprise resources, as well as to address the task of assessing the potential of a socially responsible enterprise, it is necessary to use dynamic models that will describe the specified chain of causal relationships. Purpose. The article aims to construct a model of the dynamics of characteristics of the resources of a socially responsible enterprise in the form of a system of differential equations, as well as to determine the possibility of using such a model for solving the task of assessing the potential of the enterprise. Result. In order to achieve this goal, a system of differential equations is developed. This system describes the dynamics of the characteristics of the resources of an environmentally responsible enterprise, which carries out projects to improve the ecological characteristics of its products and processes. An important feature of the proposed model is that it takes into account the causal chain of the impact of environmental measures on the dynamics of enterprise resources. On the one hand, environmental projects divert funds from projects to increase production capacity. On the other hand, due to the ecological responsibility of consumers, environmental projects positively influence the amount of specific profit per unit of production of the enterprise. Conclusions. The implementation of the proposed model for various variants of the values of controlled parameters allows us to find the set of Pareto-optimal values of the vector of the result indicators of the enterprise's activity. This set is a result of the evaluation of the potential of the analysed enterprise. The inclusion in the proposed model of the cause-effect chain of the impact of environmental measures on the dynamics of resources increases the accuracy of the assessment of the potential of a socially responsible enterprise.

Fundamental and Secondary R&D Races

2006 ◽  
Vol 6 (1) ◽  
Author(s):  
Sayed A Hussain
Keyword(s):  
State Level ◽  
Perfect Competition ◽  
Steady State Level ◽  
Free Entry ◽  
Long Run ◽  
Special Cases ◽  
Timing Uncertainty ◽  
Short Run ◽  
Endogenous Market Structure ◽  
D Investment

R&D is typically characterized by uncertainty about the existence and timing of the innovation (``fundamental R&D"). I show that these uncertainties dampen R&D investment, which may exhibit non-monotonic dynamics, possibly converging to a steady state level. In fundamental R&D, increased rivalry raises investment in the short run, but dampens it in the long run. With an endogenous market structure and free entry, perfect competition ensues, where the race lasts for an instant; with costly entry, firms engage in R&D only if they’re sufficiently optimistic that the innovation exists. Previous models of R&D races, which assume timing uncertainty (``secondary R&D"), are special cases of this model, which allows for a comparative analysis of fundamental and secondary R&D race environments.

scholarly journals Do Regulatory Measures Necessarily Affect Oman’s Seafood Export-Supply?

SAGE Open ◽  
2020 ◽  
Vol 10 (3) ◽  
pp. 215824402095065
Author(s):  
Amina Al Naabi ◽  
Shekar Bose
Keyword(s):  
Negative Impact ◽  
Production Capacity ◽  
Least Square ◽  
The European Union ◽  
Constant Elasticity ◽  
Trawl Fishing ◽  
Export Supply ◽  
Short Run ◽  
The Impact ◽  
The Eu

This article examines the influence of relative prices, production capacity, gross domestic product, fish export and trawl fishing bans, and seasonality on Oman’s fish exports to the European Union (EU), Southeast-, East- and South Asia (SEA), and the Gulf Cooperation Council (GCC) markets during 2001–2015. Following the prescribed “keep it sensibly simple” rule for practitioners and the lack of any empirical evidence to support better alternatives, a partial adjustment framework is used to describe the dynamics of fish export behavior. The appropriate functional form was decided by testing the nested Cobb–Douglas (CD) hypothesis within the constant elasticity of substitution (CES) specification and the result supports the CD specification. The models were estimated using ordinary least square (OLS). The descriptive statistical results indicate market heterogeneity in species preferences. The empirical results suggest some degree of inertia in adjustment in the EU and SEA markets. The negative impact of the “export ban” on the EU market suggests a “trade-off” between the protection of domestic consumers and the revenue forgone. The export is price elastic in the short-run for the EU market. The impact of the “trawl fishing ban” on the EU and GCC markets was negative and positive, respectively. The significance of “production capacity” for the GCC and SEA markets signals that future enhancement strategies of exports should be aligned with the long-term sustainability of fish resources. The error-correction model could be considered to check the robustness of the present findings. An examination of the sensitivity of export-supply to potential risks should also be useful.

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