Why Europe is Not Carbon Competitive. Bruegel policy brief 2007/05, November 2007

Summary. Europe specialises more than its main global competitors in industries with relatively high carbon emissions, such as minerals and chemicals, rather than in high-tech industries and services . This would have a real effect on Europe’s competitiveness in a world regulated by carbon pricing schemes such as the EU’s Emissions Trading Scheme – even if other blocs apply them as the EU does. Furthermore, in the absence of fair and undistorting carbon pricing schemes worldwide, there is a real risk that business will resort to regulatory arbitrage which will entail a shift in where emissions take place – but no reduction in global emissions. In any case, the issue of which economies are ‘carbon competitive’ will gradually become a much bigger part of the global trade conversation

Single Market Trails Home Bias. Bruegel policy brief 2006/05, October 2006

Summary. It is now 20 years since the Single Market Programme was launched with the goal of eliminating barriers to the movement of goods, services, capital and people. Over this period the EU has made substantial progress through a truly impressive legislative effort. But in the process have Europeans really become more “European”? While large industries have embraced the opportunities of the Single Market to become more international in outlook, Europeans basically continue to shop, invest and work at home. And though equity markets are still making progress, the integration of product markets appears to have stalled, and labour remains largely fragmented

Coalition-proof supply function equilibria under capacity constraints

Whereas in the absence of capacity constraints the Cournot outcome is the unique coalition-proof supply function equilibrium outcome, the presence of capacity constraints may enlarge the set of equilibrium outcomes. Interestingly, if capacities are sufficiently asymmetric the new equilibrium prices are below the Cournot price. These results have important implications for merger and privatization policies: specifically, capacity divestiture will not necessarily imply lower market prices

The Economics of the Services Directive. Bruegel Third-Party Papers, February 2007

In this paper for Contratto e impresa, Juan Delgado, describes the underlying economic logic of the Services Directive and its potential economic impact. Europe’s services sector is far from reaching its full potential. The Single Market Programme has been effective in removing obstacles to the cross border movement of goods and capital but the services sector, has not received much attention. This has resulted in most services being regulated locally and services markets becoming more fragmented

COALITION-PROOF SUPPLY FUNCTION EQUILIBRIA UNDER CAPACITY CONSTRAINTS

Whereas in the absence of capacity constraints the Cournot outcome is the unique coalition-proof supply function equilibrium outcome, the presence of capacity constraints may enlarge the set of equilibrium outcomes. Interestingly, if capacities are sufficiently asymmetric the new equilibrium prices are below the Cournot price. These results have important implications for merger and privatization policies: specifically, capacity divestiture will not necessarily imply lower market prices.

EU climate policy: dividing up the commons

Juan Delgado discusses the economic impact of climate change policies. The EU has committed to an ambitious climate change agenda. The challenge facing Europe now is how to meet the targets at a minimum cost and how to allocate the cost in such a way that it has a neutral impact on competitiveness. This note was presented in August 2007 to the Economic Policy Committee of the EU.

Coalition-proof supply function equilibria in oligopoly

In an industry where firms compete via supply functions, the set of equilibrium outcomes is large. If decreasing supply functions are ruled out, this set is reduced significantly, but remains large. Specifically, the set of prices that can be sustained by supply function equilibria is the interval between the competitive price and the Cournot price. In sharp contrast, when the number of firms is above a threshold we identify (e.g., three if demand is linear), only the Cournot outcome can be sustained by a coalition-proof supply function equilibrium.Publicad

A nonparametric test for serial independence of errors in linear regression

A test for serial independence of regression errors, consistent in the direction of first order alternatives, is proposed. The test statistic is a function of a Hoeffding-Blum-Kiefer-Rosenblatt type of empirical process, based on residuals. The resultant statistic converges, surprisingly, to the same limiting distribution as the corresponding statistic based on true errors

Nonparametric and semiparametric estimation with discrete regressors

This paper presents and discusses procedures for estimating regression curves when regressors are discrete and applies them to semiparametric inference problems. We show that pointwise root-n-consistency and global consistency of regression curve estimates are achieved without employing any smoothing, even for discrete regressors with unbounded support. These results still hold when smoothers are used, under much weaker conditions than those required with continuous regressors. Such estimates are useful in semiparametric inference problems. We discuss in detail the partially linear regression model and shape-invariant modelling. We also provide some guidance on estimation in semiparametric models where continuous and discrete regressors are present. The paper also includes a Monte Carlo study

Description of the larval stages of Gymnochthebius jensenhaarupi and phylogenetic analysis of the relationships with other species of the subfamily Ochthebiinae (Coleoptera: Hydraenidae)

The three larval instars of Gymnochthebius jensenhaarupi (Knisch, 1924) are described and illustrated, including a detailed analysis of their chaetotaxy and porotaxy. The specimens used in this study were collected with adults of G. jensenhaarupi and have been identified as such by association. Comparative notes on the morphology of these larvae with other species of the subfamily Ochthebiinae are given. A hypothesis of phylogenetic relationships between G. jensenhaarupi and other members of Ochthebiinae with thoroughly described larvae is presented. The monophyly of Ochthebiinae is supported by additional larval features. On the other hand Ochthebius, as currently composed, seems to by paraphyletic. Gymnochthebius Orchymont, 1943 is confirmed as the sister group of Aulacochthebius Kuwert, 1887.Fil: Delgado, Juan A.. Universidad de Murcia; EspañaFil: Archangelsky, Miguel. Universidad Nacional de la Patagonia "San Juan Bosco"; Argentin