Privatization, Unemployment, and Welfare in the Harris-Todaro Model with a Mixed Duopoly

2016 ◽  
Vol 16 (4) ◽  
Author(s):  
Jiancai Pi ◽  
Jun Yin
Keyword(s):  
Social Welfare ◽  
Market Share ◽  
Unemployment Rate ◽  
Relative Degree ◽  
Mixed Duopoly ◽  
Partial Privatization ◽  
The Public ◽  
Long Run ◽  
Public Firm ◽  
Short Run

Abstract This paper explores the unemployment and welfare effects of privatization through the Harris-Todaro model with a mixed duopoly. Our approach is more generalized than the existing literature. When capital is sector-specific (i. e., it is in the short run), an increase in the degree of partial privatization will raise the unemployment rate, but the change of social welfare is conditional on the market share of the public firm and the relative degree of partial privatization. When capital is sector-mobile (i. e., it is in the long run), an increase in the degree of partial privatization will reduce the unemployment rate, but the change of social welfare is also dependent on the market share of the public firm and the relative degree of partial privatization. Our results capture the fact that the public firm and the private firm usually coexist in a competitive environment in the real world.

Privatizing Multi-subsidiary Public Firm in Location Model

2017 ◽  
Vol 19 (1) ◽  
Author(s):  
Jingliang Chen ◽  
Jie Shuai
Keyword(s):  
Social Welfare ◽  
Consumer Welfare ◽  
Location Model ◽  
Transport Cost ◽  
Mixed Duopoly ◽  
Type Model ◽  
The Public ◽  
Public Firm ◽  
The Government

AbstractThis paper examines a different way of privatization from existing literature. In a mixed duopoly Hotelling type model in which the public firm consists of multiple subsidiaries, instead of privatizing the public firm as its entirety, the government may privatize only one of the subsidiaries (for example the manufacturing subsidiary). We find that this kind of privatization always improves social welfare comparing to no privatization at all. And comparing to privatizing the public firm in its entirety, privatizing only the manufacturing subsidiary always results in larger consumer welfare and results in larger social welfare when transport cost or R&D cost is sufficiently large.

A Model of Queue Scalping

2021 ◽  
Author(s):  
Luyi Yang ◽  
Zhongbin Wang ◽  
Shiliang Cui
Keyword(s):  
Social Welfare ◽  
Service Provider ◽  
Operations Management ◽  
Consumer Surplus ◽  
System Throughput ◽  
Theoretic Model ◽  
Material Interest ◽  
Long Run ◽  
Short Run ◽  
Primary Service

Recent years have witnessed the rise of queue scalping in congestion-prone service systems. A queue scalper has no material interest in the primary service but proactively enters the queue in hopes of selling his spot later. This paper develops a queueing-game-theoretic model of queue scalping and generates the following insights. First, we find that queues with either a very small or very large demand volume may be immune to scalping, whereas queues with a nonextreme demand volume may attract the most scalpers. Second, in the short run, when capacity is fixed, the presence of queue scalping often increases social welfare and can increase or reduce system throughput, but it tends to reduce consumer surplus. Third, in the long run, the presence of queue scalping motivates a welfare-maximizing service provider to adjust capacity using a “pull-to-center” rule, increasing (respectively, reducing) capacity if the original capacity level is low (respectively, high). When the service provider responds by expanding capacity, the presence of queue scalping can increase social welfare, system throughput, and even consumer surplus in the long run, reversing its short-run detrimental effect on customers. Despite these potential benefits, such capacity expansion does little to mitigate scalping and may only generate more scalpers in the queue. Finally, we compare and contrast queue scalping with other common mechanisms in practice—namely, (centralized) pay-for-priority, line sitting, and callbacks. This paper was accepted by Victor Martínez de Albéniz, operations management.

Factors affecting level of unemployment in South Asia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aiza Shabbir ◽  
Shazia kousar ◽  
Muhammad Zubair Alam
Keyword(s):  
South Asian ◽  
Unemployment Rate ◽  
Significant Relationship ◽  
Good Governance ◽  
Asian Countries ◽  
Economic Variables ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
The Government

PurposeThis study aims to investigate the short-run and long-run relationship between economic variables and the unemployment rate in South Asian countries.Design/methodology/approachA panel Vector Error Correction (VECM) model is used to establish the long-run and the short-run relationship between unemployment rate and selected economic variables. Data were collected from WDI, WGI and FDSD for the year's 1994–2016.FindingsThe finding of the study showed a negative and significant relationship at the 5% level of significance among governance, internet users, mobile cellular subscriptions, fixed broadband subscriptions and human capital with an unemployment rate of South Asian economies. On the other hand, financial activity (credit) and population growth have a positive and significant relationship with the unemployment rate.Research limitations/implicationsIn the light of our findings clear that employment problems can only be created if the government does not put in place adequate measures to control the population and allocate resources equitably, giving a sense of belonging to all citizens. Therefore, to provide the controlled population with the necessary employment opportunities, it is necessary to allocate resources efficiently and to launch projects aimed at creating jobs.Practical implicationsTransparency or merit is the basis of good governance and the very first step to achieving the goal of good governance is to fight against corruption. It provides a complete justification for providing good quality management records, financial controlling and managerial systems.Originality/valueThe connections between governance and unemployment are complex and need to be studied in a detailed manner. There is the absence of literature that strongly interfaces good governance to unemployment; the fundamental work in this regard is Farid (2015). They locate a solid relationship between good governance and improving external debt situation by in Pakistan a time series analysis. But there is no research in the context of South Asian countries between governance and unemployment.

Public expenditure on education, educational attainment and unemployment nexus in India: an empirical investigation

2020 ◽  
Vol 47 (5) ◽  
pp. 663-674
Author(s):  
Deepti Singh ◽  
Shruti Shastri
Keyword(s):  
Educational Attainment ◽  
Peer Review ◽  
Unemployment Rate ◽  
Public Expenditure ◽  
Secondary Level ◽  
Content Type ◽  
Vector Error Correction ◽  
Long Run ◽  
Short Run ◽  
Enrolment Ratio

PurposeThe purpose of this paper is to examine the nexus among public expenditure allocated to education, educational attainment at secondary level and unemployment rate in India for the period 1987–2017.Design/methodology/approachThe study employs autoregressive distributed lags (ARDL) bound testing approach suggested by Pesaran et al. (2001) to find the long-run relationship among the variables. The causal linkages are investigated through block exogeneity test based on vector error correction model.FindingsThe empirical results indicate that educational attainment proxied by gross enrolment ratio at secondary level of education negatively affects unemployment rate in long run as well as in short run. However, public expenditure on education is ineffective in influencing both educational attainment and unemployment rate.Originality/valueThe study is the first empirical effort to identify the causal nexus among public expenditure on education, educational attainment and unemployment in the context of India.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2019-0396

scholarly journals Price Appreciation and Roughness Duality in Bitcoin: A Multifractal Analysis

Mathematics ◽  
2021 ◽  
Vol 9 (17) ◽  
pp. 2088
Author(s):  
Cristiana Vaz ◽  
Rui Pascoal ◽  
Helder Sebastião
Keyword(s):  
Fluctuation Analysis ◽  
Informational Efficiency ◽  
Comprehensive Overview ◽  
Multifractal Detrended Fluctuation Analysis ◽  
Long Range Correlations ◽  
The Public ◽  
Long Run ◽  
Short Run ◽  
The Relationship

Since its launch in 2009, bitcoin has thrived, attracting the attention of investors, regulators, academia, and the public in general. Its price dynamics, characterized by extreme volatility, severe jumps, and impressive long-term appreciation, suggest that bitcoin is a new digital asset. This study presents a comprehensive overview of the fractality of bitcoin in a high-frequency framework, namely by applying Multifractal Detrended Fluctuation Analysis (MF-DFA) and a Multifractal Regime Detecting Method (MRDM) to Bitstamp 1 min bitcoin returns from January 2013 to July 2020. The results suggest that bitcoin is multifractal, with smaller and larger fluctuations being persistent and anti-persistent, respectively. Multifractality comes from significant long-range correlations, which cast some doubts on the informational efficiency at this frequency, but mainly comes from fat-tails, which highlights the significant risks undertaken by investors in this market. Our most important result is that the degree and richness of multifractality is time-varying and increased after 2017, when volumes and prices experienced an explosive behaviour. This complexity puts into perspective the duality of bitcoin: while it is characterized by long-run attractiveness and increasing valuation, it also has a high short-run instability. Hence, this study provides some empirical evidence supporting the relationship between these two observable features.

scholarly journals The Relationship between Government Debt and Social Welfare

2021 ◽  
Vol 19 (1) ◽  
pp. 125-134
Author(s):  
Muhammad Kivlan Reftreka Nugraha ◽  
Hefrizal Handra
Keyword(s):  
Social Welfare ◽  
Negative Correlation ◽  
Government Debt ◽  
Poverty Rate ◽  
Gdp Per Capita ◽  
Poverty Level ◽  
Long Run ◽  
Short Run ◽  
Per Capita ◽  
The Relationship

This study aims to analyze the relationship between government debt and social welfare in Indonesia in 1980-2019. The data used in this research is secondary data using time series data. The analysis used is the Error Correction Model (ECM). The findings result from the first model show that in the short-run, additional debt-to-GDP was not significant to the poverty level and GDP per capita. Meanwhile, the long-run, additional debt-to-GDP is significant to the poverty level and GDP per capita. The results also find that in the long run additional debt-to-GDP is positively correlated with poverty levels in Indonesia, meaning that additional debt-to-GDP increases the poverty rate in Indonesia. For GDP per capita, additional debt-to-GDP has a negative correlation. The inflation, tax-to-GDP, and GDP are not significant to the poverty rate in the short-run. Meanwhile, the long run, the additional debt-to-GDP ratio and GDP variable is significant to the poverty rate, and has a positif and negative correlation. The findings from second model also indicate that population and inflation are significant and positively correlated with the poverty level, but tax-to-GDP ratio is not significant on GDP per capita in the short-run. Meanwhile, the long run, the population and tax-to-GDP are significant to GDP per capita. Total population has a positive correlation, while tax-to-GDP ratio has a negative correlation.

The Asymmetric Impact of Oil Prices on Unemployment in the MENA Region

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Iman Cheratian ◽  
Mohammad Reza Farzanegan ◽  
Saleh Goltabar
Keyword(s):  
Unemployment Rate ◽  
Resource Curse ◽  
Oil Prices ◽  
Alternative Measure ◽  
Mena Region ◽  
Unemployment Rates ◽  
Distributed Lag ◽  
Long Run ◽  
Oil Rents ◽  
Short Run

Abstract We examine the effects of oil prices on unemployment rates in the Middle East and North Africa (MENA) over the period of 1991–2017. Using the panel nonlinear autoregressive distributed lag (panel NARDL) model, the results show that in the long run, positive changes of oil prices exert a positive (increasing) impact on the unemployment rate. However, negative changes in oil prices have a significant decreasing effect on the unemployment rate in the MENA region. We also find that the short run changes in oil prices do not show a significant effect on unemployment rates. Our findings are robust to an alternative measure of oil rents per capita and in line with predictions of the resource curse hypothesis. Countries with higher dependency on natural resource rents experience, on average, a slower long run economic growth rate (and thus higher unemployment rates), compared with countries with lower dependency.

Hospital Service Scope Expansion and Market Share Improvement: A Dynamic Modeling and Multivariate Approach

1995 ◽  
Vol 8 (3) ◽  
pp. 162-171 ◽  
Author(s):  
Shur Li ◽  
Thomas T. H. Wan
Keyword(s):  
Market Share ◽  
Dynamic Modeling ◽  
Urban Areas ◽  
Hospital Service ◽  
Cross Sectional ◽  
Organizational Status ◽  
Long Run ◽  
Modeling Analysis ◽  
Short Run ◽  
The Relationship

In a national trend, large, acute-care hospitals located in urban areas of the nation were continuously broadening their service scope, adding services at the rate of one each year, from 1982 to 1987. This study proposes that the underlying rationale of hospital service-scope expansion is status-gap minimization. This perspective was quantitatively interpreted and tested by a dynamic modeling analysis. Findings support status-gap minimization as the rationale for service-scope expansion. Using multivariate regression and dynamic modeling analysis, the study demonstrates that the cross-sectional relationship between two steady states – the relationship between service scope and market share – is positive and statistically significant. However, the market share change is not related to hospital service scope. The interpretation offered is that hospitals expand the scope of services looking not so much to increase their market share benefit in the short run as to raise their organizational status. In the long run, higher organizational status such as broader service scope then benefits market share.

scholarly journals The Nexus Among Economic Growth, Inflation and Unemployment in Bhutan

2019 ◽  
Vol 20 (1) ◽  
pp. 94-105
Author(s):  
Ugyen Tenzin
Keyword(s):  
Economic Growth ◽  
Unemployment Rate ◽  
Positive Association ◽  
Economic Output ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Employment Elasticity ◽  
The Impact

In order to understand the dynamics of unemployment in Bhutan at a macro-level, this study has explored the association among economic growth, inflation and unemployment from 1998 to 2016. The autoregressive distributed lag (ARDL) model was applied to estimate the impact of economic growth and inflation on unemployment. The results of this empirical analysis suggest that economic growth had no impact on the reduction of unemployment rate in Bhutan both in the short and in the long run. In fact, as the economic growth increased, so did the unemployment rate. However, inflation had a negative association with unemployment rate in the short run and a positive association in the long run. In other words, an increase in the employment rate led to an increase in the inflation in the short run. Likewise, if inflation is not monitored or controlled, the uncertainty of inflation can lead to lower investment and lower economic growth, thereby causing unemployment to rise in the long run. This study, therefore, recommends policymakers to take into account the employment elasticity with respect to economic output and focus on sectors, which have more absorptive capacity in engaging the young labour market entrants. JEL: B22, C22, E24, E31

The Public Thermostat, Political Responsiveness and Error-Correction: Border Control and Asylum in Britain, 1994–2007

2009 ◽  
Vol 39 (4) ◽  
pp. 847-870 ◽  
Author(s):  
Will Jennings
Keyword(s):  
Public Opinion ◽  
Error Correction ◽  
Home Office ◽  
Important Indicator ◽  
Correction Model ◽  
The Public ◽  
Long Run ◽  
Short Run ◽  
Policy Opinion ◽  
Border Controls

The responsiveness of government to the preferences of its citizens is considered to be an important indicator of the performance of advanced democracy. This article argues that the thermostatic model of policy/opinion responsiveness can be represented in the form of an error-correction model where policy and public opinion variables are cointegrated, and extends the focus of investigation to government outputs. This models the short-run and long-run equilibrium of interactions between public opinion and policy/bureaucratic outputs. The article assesses the performance of British government – and, in particular, the Immigration and Nationality Directorate of the Home Office – in the operation of border controls and administration of claims for asylum, for the period between 1994 and 2007.

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