Optimality in Municipal Debt: A Comment and Respecification

1979 ◽  
Vol 7 (3) ◽  
pp. 352-363 ◽  
Author(s):  
Patrick J. Sullivan
Keyword(s):  
Time Preference ◽  
Cost Minimization ◽  
Optimal Level ◽  
General Purpose ◽  
Debt Financing ◽  
Policy Implications ◽  
Municipal Debt ◽  
The Cost ◽  
Private Rate

The optimal level of debt financing by municipally owned and operated enterprises is examined, with particular emphasis placed on several misconceptions involved in an earlier article by Robert A. Collins. A respecified cost minimization model, taking the cost of risk bearing and the private rate of time preference into account, is proposed. The resulting policy implications for debt financing are very different from those argued by Collins and from those traditionally made for general-purpose municipal financing.

scholarly journals Multistage Investment Actions with the Emission Cap

2016 ◽  
Vol 2016 ◽  
pp. 1-12 ◽  
Author(s):  
Mingrong Wang ◽  
Mingxi Wang ◽  
Yi Hu ◽  
Haibin Xie
Keyword(s):  
Emission Reduction ◽  
Cost Minimization ◽  
Minimum Cost ◽  
Optimal Investment ◽  
Optimal Level ◽  
Policy Implications ◽  
Environmental Benefit ◽  
Allocation Rules ◽  
Emission Abatement ◽  
Innovation Potential

To achieve the emission reduction target in 2020, China plans to establish a nationwide carbon trading market during 2016–2019. It is therefore an important but difficult task for policymakers to set emission allowances and allocate them among entities. There are three alternative allocation rules, which vary from free of charge to full auctioning. For business managers, the question is whether one of these rules meets the emission cap at the minimum cost. Based on China’s emission-abatement target, this paper examines the optimal investment and analyzes its implementation in different allocation rules. A new model is developed to formulate enterprises’ emission reduction pathways and the cost-minimization problem with the emission cap. The results show that the magnitude of enterprises’ emission reduction is positively related to their innovation potential; neither auctioning nor being free of charge can make enterprise’s individual emission-abatement investment in accordance with the optimal level; enterprise’s individual emission-abatement investment is sensitive to efficiency, budget cap, and environmental benefit. This paper discusses simultaneously their policy implications for China.

Joining Pre-existing International Production Networks: Implications for India's Economic Integration with East Asia

2014 ◽  
Vol 13 (2) ◽  
pp. 117-142
Author(s):  
Jeongmeen Suh ◽  
Jong Duk Kim
Keyword(s):  
Economic Integration ◽  
Multinational Firms ◽  
Cost Minimization ◽  
Policy Implications ◽  
Production Networks ◽  
Economic Data ◽  
International Production ◽  
Production Processes ◽  
Cost Minimization Problem ◽  
The Cost

This study provides a conceptual framework to explain the difficulties a late-follower country will need to surmount if it seeks to join pre-existing international production networks (IPNs). To address this problem, we consider the cost minimization problem that confronts multinational firms as they choose how to locate fragmented production processes across borders. By clarifying IPN-related costs, we describe the structural disadvantages that confront late-follower countries and provide several policy implications that may help these countries overcome their disadvantages through targeted efforts. We use our framework to guide our examination of economic data, to analyze the hurdles that limit India's participation in the East Asian IPNs.

The Green Revolution and the Gene Revolution in Pakistan: Policy Implications (The Quaid-i-Azam Memorial Lecture)

2005 ◽  
Vol 44 (4I) ◽  
pp. 359-386 ◽  
Author(s):  
Robert E. Evenson
Keyword(s):  
Food Safety ◽  
Green Revolution ◽  
Policy Implications ◽  
Gm Crops ◽  
Regulatory Environment ◽  
Memorial Lecture ◽  
Regulatory Systems ◽  
Cost Reductions ◽  
The Cost ◽  
Export Crops

Pakistan achieved high levels of Green Revolution Modern Variety (GRMV) adoption in the Green Revolution. Pakistan out-performed India and Bangladesh in the Green Revolution. Only China, among major countries, out-performed Pakistan in the Green Revolution. Pakistan does not have the food safety and environmental risk studies in place to support a regulatory environment for biotechnology. In effect, Pakistan is following the “precautionary principle” and applying it to science policy. This paper argues that this is a mistake. Pakistan is paying a “double penalty” for its inability to develop the regulatory systems required to take advantage of genetically modified (GM) crops. Not only does it lose the cost reductions enabled by GM crops, but because other countries have adopted GM crops, world prices are lower as a result and affect Pakistan’s export crops.

Cost-minimization analysis of drugs used in the treatment of Asthma and COPD diseases in India

2020 ◽  
Vol 15 ◽  
Author(s):  
Billu Payal ◽  
Anoop Kumar ◽  
Harsh Saxena
Keyword(s):  
Generic Drugs ◽  
Cost Minimization ◽  
Cost Savings ◽  
Chronic Obstructive ◽  
Pulmonary Medicine ◽  
Potential Cost ◽  
Maximum Cost ◽  
Cost Minimization Analysis ◽  
Cost Variation ◽  
The Cost

Background: Asthma and Chronic Obstructive Pulmonary Diseases (COPD) are well known respiratory diseases affecting millions of peoples in India. In the market, various branded generics, as well as generic drugs, are available for their treatment and how much cost will be saved by utilizing generic medicine is still unclear among physicians. Thus, the main aim of the current investigation was to perform cost-minimization analysis of generic versus branded generic (high and low expensive) drugs and branded generic (high expensive) versus branded generic (least expensive) used in the Department of Pulmonary Medicine of Era Medical University, Lucknow for the treatment of asthma and COPD. Methodology: The current index of medical stores (CIMS) was referred for the cost of branded drugs whereas the cost of generic drugs was taken from Jan Aushadi scheme of India 2016. The percentage of cost variation particularly to Asthma and COPD regimens on substituting available generic drugs was calculated using standard formula and costs were presented in Indian Rupees (as of 2019). Results: The maximum cost variation was found between the respules budesonide high expensive branded generic versus least expensive branded generic drugs and generic versus high expensive branded generic. In combination, the maximum cost variation was observed in the montelukast and levocetirizine combination. Conclusion: In conclusion, this study inferred that substituting generic antiasthmatics and COPD drugs can bring potential cost savings in patients.

Extending the benefits of ESG disclosure: The effect on the cost of debt financing

2021 ◽  
Author(s):  
Nicola Raimo ◽  
Alessandra Caragnano ◽  
Marianna Zito ◽  
Filippo Vitolla ◽  
Massimo Mariani
Keyword(s):  
Debt Financing ◽  
Cost Of Debt ◽  
The Cost

scholarly journals Inclusionary Housing: An Evaluation of a New Public Rental Housing Governance Instrument in China

Land ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 305
Author(s):  
Juan Yan ◽  
Marietta Haffner ◽  
Marja Elsinga
Keyword(s):  
Housing Market ◽  
Affordable Housing ◽  
Local Governments ◽  
Rental Housing ◽  
Analytical Framework ◽  
Point Of View ◽  
Policy Implications ◽  
Research Approach ◽  
Inclusionary Housing ◽  
The Cost

Inclusionary housing (IH) is a regulatory instrument adopted by local governments in many countries to produce affordable housing by capturing resources created through the marketplace. In order to assess whether it is efficient, scholarly attention has been widely focused on its evaluation. However, there is a lack of studies evaluating IH from a governance perspective. Since IH is about involving private actors in affordable housing production, the governance point of view of cooperating governmental and non-governmental actors governing society to achieve societal goals is highly relevant. The two most important elements of governance—actors and interrelationships among these actors—are taken to build an analytical framework to explore and evaluate the governance of IH. Based on a research approach that combines a literature review and a case study of China, this paper concludes that the ineffective governance of Chinese IH is based on three challenges: (1) The distribution of costs and benefits across actors is unequal since private developers bear the cost, but do not enjoy the increments of land value; (2) there is no sufficient compensation for developers to offset the cost; and (3) there is no room for negotiations for flexibility in a declining market. Given that IH is favored in many Chinese cities, this paper offers the policy implications: local governments should bear more costs of IH, rethink their relations with developers, provide flexible compliance options for developers, and perform differently in a flourishing housing market and a declining housing market.

scholarly journals Harnessing Wind Energy Potential in ASEAN: Modelling and Policy Implications

2021 ◽  
Vol 13 (8) ◽  
pp. 4279
Author(s):  
Youngho Chang ◽  
Phoumin Han
Keyword(s):  
Wind Energy ◽  
Carbon Emissions ◽  
Policy Implications ◽  
Wind Generation ◽  
Energy Potential ◽  
Trade Model ◽  
Electricity Trade ◽  
Generation Capacity ◽  
The Cost ◽  
Business As Usual

This study examines whether and how harnessing more wind energy can decrease the cost of meeting the demand for electricity and amount of carbon emissions in the Association for Southeast Asian Nations (ASEAN) region, using the ASEAN integrated electricity trade model. Three scenarios are considered: a counterfactual business-as-usual (BAU) scenario, which assumes no wind energy is used; an actual BAU scenario that uses the wind-generation capacity in 2018; and a REmap scenario, which employs the wind-generation capacity from the Renewable Energy Outlook for ASEAN. Simulation results suggest that dispatching more wind energy decreases the cost of meeting the demand for electricity and amount of carbon emissions. However, these emissions increase during the late years of the study period, as the no- or low-emitting energy-generation technologies are crowded out.

Compensation based on active power filters – The cost minimization

2015 ◽  
Vol 267 ◽  
pp. 648-654 ◽  
Author(s):  
Marcin Maciążek ◽  
Dariusz Grabowski ◽  
Marian Pasko ◽  
Michał Lewandowski
Keyword(s):  
Cost Minimization ◽  
Active Power ◽  
Active Power Filters ◽  
Power Filters ◽  
The Cost

A Dynamic Analysis of Child Labor with a Variable Rate of Discount: Some Policy Implications

2006 ◽  
Vol 5 (1) ◽  
Author(s):  
Satya P Das ◽  
Rajat Deb
Keyword(s):  
Discount Rate ◽  
Child Labor ◽  
Time Preference ◽  
Infinite Horizon ◽  
Policy Implications ◽  
Poverty Trap ◽  
Variable Rate ◽  
Lump Sum ◽  
Long Run ◽  
Short Run

AbstractThis paper analyzes the problem of child labor in an infinite-horizon dynamic model with a variable rate of time preference and credit constraints. The variability in the rate of time preference leads to the possibility of multiple steady states and a poverty trap. The paper considers the long-run and short-run effects of an array of policies like enrollment subsidy, improvement in primary education infrastructure, lump-sum subsidy, and variations in loan market parameters. We distinguish between policies that reduce child labor in the long run only in the presence of a variable discount rate and other policies which work whether or not the discount rate is variable. Credit-related policies belong to the former group. Policies that reduce child labor and increase family consumption in the long run may have an adverse effect of lowering consumption in the short run.

How does ownership structure affect the financing and dividend decisions of firm?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tahar Tayachi ◽  
Ahmed Imran Hunjra ◽  
Kirsten Jones ◽  
Rashid Mehmood ◽  
Mamdouh Abdulaziz Saleh Al-Faryan
Keyword(s):  
Ownership Structure ◽  
Dividend Policy ◽  
Generalized Method Of Moments ◽  
Institutional Ownership ◽  
Agency Cost ◽  
Debt Financing ◽  
Policy Implications ◽  
Managerial Ownership ◽  
Content Type ◽  
The Impact

Purpose Ownership structure deals with internal corporate governance mechanism, which plays important role in minimizing conflict of interests between shareholders and management Ownership structure is an important mechanism that influences the value of firm, financing and dividend decisions. This paper aims to examine the impact of the ownership structures, i.e. managerial ownership, institutional ownership on financing and dividend policy. Design/methodology/approach The authors use panel data of manufacturing firms from both developed and developing countries, and the generalized method of moments (GMM) is applied to analyze the results. The authors collect the data from DataStream for the period of 2010 to 2019. Findings The authors find that managerial ownership and ownership concentration have significant and positive effects on debt financing, but they have significant and negative effects on dividend policy. Institutional ownership shows a positive impact on financing decisions and dividend policy for sample firms. Originality/value This study fills the gap by proving the policy implications for both firms and investors, as managers prefer debt financing, but at the same time try to ignore dividend payment. Therefore, investors may not invest in firms with a higher proportion of managerial ownership and may choose to invest more in institutional ownership, which lowers the agency cost.

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