Pricing Structures in the Deregulated UK Electricity Market

As residential energy markets open to competition, consumers can choose from a range of tariffs offered by different suppliers. We examine the relationship between the fixed charge levied on each consumer, and the variable charge per unit of energy used across all these tariffs. Data are the tariffs offered in April 2002 in the 14 electricity regions of Great Britain by seventeen suppliers, seven of whom operate nationally. Our analysis focuses on the revenue trade-off for the company. We identify the effect of payment method on the relationship between fixed and variable charge. We find significant effects of the distribution and transmission charges which the suppliers pay in each area, as well as the size of the market both by number of customers and area; and confirm that incumbents charge significantly more that entrants. We also find significant differences between the prepayment and credit tariffs

Financial Integration, Exchange Rate Regimes in CEECs, And Joining the EMU: Just Do It...

Candidate countries of central and eastern Europe (CEECs) are suppose to join the EU in 2004, June, which imply that they will face important challenges in the conduct of macroeconomic policy, in order to be able to enter the ERM-II system and eventually enter the EMU (European Monetary Union). Abandoning an independent monetary policy might entail significant costs for countries, which have succeeded in recovering and are in a process of catching-up. However those costs have probably been exaggerated, and their estimation biased by the traditional optimal currency area criteria. The main criticism against a too strong emphasis on the latter rests on two arguments. The first one is that assessing the trade-off for joining the EMU does not deliver the same conclusion ex ante and ex post. Meanwhile, the degree of financial integration will likely increase dramatically, which in turns will decrease the opportunity cost of loosing the monetary policy for absorbing country specific shocks. In a world of capital mobility, the room left for an independent monetary policy is very narrow, maybe close to zero in small, emerging countries, more vulnerable to speculative attacks than countries in the core. The second argument is more empirical. While the link between the exchange rate regime and the fundamentals is rather weak, the political agenda of joining the EU and subsequently the EMU seems to explain the choice of the exchange rate regime.http://deepblue.lib.umich.edu/bitstream/2027.42/40036/3/wp650.pd

Target Zones in History and Theory: Lessons from an Austro-Hungarian Experiment (1896-1914)

The first known experiment with an exchange rate band took place in Austria- Hungary between 1896 and 1914. The rationale for introducing this policy rested on precisely those intuitions that the modern literature has emphasized: the band was designed to secure both exchange rate stability and monetary policy autonomy. However, unlike more recent experiences, such as the ERM, this policy was not undermined by credibility problems. The episode provides an ideal testing ground for some important ideas in modern macroeconomics: specifically, can formal rules, when faithfully adhered to, provide policy makers with some advantages such as short term autonomy? First, we find that a credible band has a "microeconomic" influence on exchange rate stability. By reducing uncertainty, a credible fluctuation band improves the quality of expectations, a channel that has been neglected in the modern literature. Second, we show that the standard test of the basic target zone model is flawed and develop an alternative methodology. We believe that these findings shed a new light on the economics of exchange rate bands

Wanted: Trained Security Specialists\u27

This paper looks at security concerns within the IT industry and how to increase student interest in this field of study. One specific activity is presented as a way to expose students to security concerns they are likely to encounter as a system administrator

Conspiratorial beliefs observed through entropy principles

We propose a novel approach framed in terms of information theory and entropy to tackle the issue of conspiracy theories propagation. We start with the report of an event (such as 9/11 terroristic attack) represented as a series of individual strings of information denoted respectively by two-state variable Ei=+/-1, i=1,..., N. Assigning Ei value to all strings, the initial order parameter and entropy are determined. Conspiracy theorists comment on the report, focusing repeatedly on several strings Ek and changing their meaning (from -1 to +1). The reading of the event is turned fuzzy with an increased entropy value. Beyond some threshold value of entropy, chosen by simplicity to its maximum value, meaning N/2 variables with Ei=1, doubt prevails in the reading of the event and the chance is created that an alternative theory might prevail. Therefore, the evolution of the associated entropy is a way to measure the degree of penetration of a conspiracy theory. Our general framework relies on online content made voluntarily available by crowds of people, in response to some news or blog articles published by official news agencies. We apply different aggregation levels (comment, person, discussion thread) and discuss the associated patterns of entropy change.Comment: 21 page, 14 figure

Direct Foreign Investments And Productivity Growth In Hungarian Firms, 1992-1999

The impact of FDI on total factor productivity in Hungary during the 1990s' is assessed with a large enterprise panel. Foreign equity is associated with higher productivity levels and has a substantial, positive spillover effect on aggregate TFP growth. However, this benefit is significant only when associated with export orientation, while inward-looking FDI has negative side effects. Regionally, the north-western area, close to EU borders, benefits much more from FDI, whether foreign-owned or locally-owned private firms are considered. Otherwise, only the later absorb a reduced volume of externalities. Finally, State ownership implies lower levels of productivity, but does not hinder the capacity to respond to market incentives, including FDI induced externalities.http://deepblue.lib.umich.edu/bitstream/2027.42/39809/3/wp425.pd

The World-Trade Web: Topological Properties, Dynamics, and Evolution

This paper studies the statistical properties of the web of import-export relationships among world countries using a weighted-network approach. We analyze how the distributions of the most important network statistics measuring connectivity, assortativity, clustering and centrality have co-evolved over time. We show that all node-statistic distributions and their correlation structure have remained surprisingly stable in the last 20 years -- and are likely to do so in the future. Conversely, the distribution of (positive) link weights is slowly moving from a log-normal density towards a power law. We also characterize the autoregressive properties of network-statistics dynamics. We find that network-statistics growth rates are well-proxied by fat-tailed densities like the Laplace or the asymmetric exponential-power. Finally, we find that all our results are reasonably robust to a few alternative, economically-meaningful, weighting schemes.Comment: 44 pages, 39 eps figure

Using ARIMA Forecasts to Explore the Efficiency of the Forward Reichsmark Market

We explore the efficiency of the forward reichsmark market in Vienna between 1876 and 1914. We estimate ARIMA models of the spot exchange rate in order to forecast the one-month-ahead spot rate. In turn we compare these forecasts to the contemporaneous forward rate, i.e., the market's forecast of the future spot rate. We find that shortly after the introduction of a "shadow" gold standard in the mid-1890s the forward rate became a considerably better predictor of the future spot rate than during the prior flexible exchange rate regime. Between 1907 and 1914 forecast errors were between a half and one-fourth of their pre-1896 level. This implies that the Austro-Hungarian Bank's policy of defending the gold value of the currency was successful in improving the efficiency of the foreign exchange market

Geometric vulnerability of democratic institutions against lobbying: a sociophysics approach

An alternative voting scheme is proposed to fill the democratic gap between a president elected democratically via universal suffrage (deterministic outcome, the actual majority decides), and a president elected by one person randomly selected from the population (probabilistic outcome depending on respective supports). Moving from one voting agent to a group of r randomly selected voting agents reduces the probabilistic character of the outcome. Building r such groups, each one electing its president, to constitute a group of the groups with the r local presidents electing a higher-level president, does reduce further the outcome probabilistic aspect. Repeating the process n times leads to a n-level bottom-up pyramidal structure. The hierarchy top president is still elected with a probability but the distance from a deterministic outcome reduces quickly with increasing n. At a critical value n_{c,r} the outcome turns deterministic recovering the same result a universal suffrage would yield. The scheme yields several social advantages like the distribution of local power to the competing minority making the structure more resilient, yet preserving the presidency allocation to the actual majority. An area is produced around fifty percent for which the president is elected with an almost equiprobability slightly biased in favor of the actual majority. However, our results reveal the existence of a severe geometric vulnerability to lobbying. A tiny lobbying group is able to kill the democratic balance by seizing the presidency democratically. It is sufficient to complete a correlated distribution of a few agents at the hierarchy bottom. Moreover, at the present stage, identifying an actual killing distribution is not feasible, which sheds a disturbing light on the devastating effect geometric lobbying can have on democratic hierarchical institutions.Comment: 52 pages, 22 figures, to appear in Mathematical Models and Methods in Applied Science

Les enjeux de la crise européenne

L’Union européenne traverse sa crise la plus grave. C’est en effet une crise multiregistre et cumulative : politique et démocratique, économique et sociale, géopolitique et géographique. Elle débouche non pas tant sur une déconstruction européenne que sur la confrontation entre deux futurs politiques et territoriaux pour l’Union européenne.The Stakes of the European Crisis The European Union is currently undergoing an unprecedented crisis, which is both multi-faceted and ongoing. It has affected a variety of spheres : political and democratic, economic and social, geopolitical and geographic. While many have argued this crisis may lead to European deconstruction, it is perhaps more a confrontation between two European visions