The Oil Extraction Puzzle: Theory and Evidence

This paper considers the relationship between the extraction rates and remaining reserves of a non-renewable resource. Linear extraction rules are derived wherein the slope term is the same regardless of the cost parameters and market structure whilst differences are captured by the intercept. Using data from the world oil industry the implied test could not be rejected for the case of 1981 but failed using the 1991 and 2000 data. Latterly, either OPEC members are apparently extracting too slowly or non-OPEC countries are extracting too quickly. Three alternative resolutions of this puzzle are offered.oil extraction, OPEC, non-renewable resource

The oil extraction puzzle: theory and evidence

This paper considers the relationship between the extraction rates and remaining reserves of a non-renewable resource. Under general conditions the derived extraction rule is firstly linear, and secondly exhibits a slope term common to all extractors regardless of pricing behaviour and costs whilst differences are captured by the intercept. Data from the world oil industry supports the hypothesis of linearity but the implied test was rejected in some cases. Latterly, it appears that either OPEC members are discounting at a higher rate than the competitive fringe or they are overstating their reserve levels.oil, OPEC, extraction, reserves, resources

Leverage effect in energy futures

We propose a comprehensive treatment of the leverage effect, i.e. the relationship between returns and volatility of a specific asset, focusing on energy commodities futures, namely Brent and WTI crude oils, natural gas and heating oil. After estimating the volatility process without assuming any specific form of its behavior, we find the volatility to be long-term dependent with the Hurst exponent on a verge of stationarity and non-stationarity. Bypassing this using by using the detrended cross-correlation and the detrending moving-average cross-correlation coefficients, we find the standard leverage effect for both crude oil. For heating oil, the effect is not statistically significant, and for natural gas, we find the inverse leverage effect. Finally, we also show that none of the effects between returns and volatility is detected as the long-term cross-correlated one. These findings can be further utilized to enhance forecasting models and mainly in the risk management and portfolio diversification.Comment: 19 pages, 2 figures, 5 table

Spatial Competition in Private Labels

Previous studies find that private labels increase retailers' bargaining power with manufacturers and allow retailers to price discriminate. We use a spatial discrete choice model to show that retailers also use store brands to create market power through store differentiation, but not as a means of building market share.Marketing,

A Stated Preference Analysis of International Commodity Marketing: South Korean Hotel Meat Buyers' Perceptions of Canadian Beef, US Beef and Australian Beef

International Relations/Trade, Livestock Production/Industries,

An Analysis of the Supplier Selection Process

Customers select suppliers based on the relative importance of different attributes such as quality, price, flexibility, and delivery performance. This study examines the difference between managers\u27 rating of the perceived importance of different supplier attributes and their actual choice of suppliers in an experimental setting. We use two methods: a Likert scale set of questions, to determine the importance of supplier attributes; and a discrete choice analysis (DCA) experiment, to examine the choice of suppliers. The results indicate that although managers say that quality is the most important attribute for a supplier, they actually choose suppliers based largely on cost and delivery performance

Keeping It Off The Books: An Empirical Investigation Into the Characteristics of Firms That Engage In Tax Non-Compliance

We investigate firm tax noncompliance using a survey of firms from around the world. Overall, we find that small firms are less and large firms are more compliant. Foreign owned firms, exporters and firms that have audited finance statements are also more compliant, as found by others, but, quite surprisingly, government ownership is insignificant. Not surprisingly, organized crime, high taxes, and government corruption all result in lower compliance. Finally, we find that firms around the world engage in tax noncompliance but, holding all else constant, compliance in highest in OECD countries and the lowest in Latin American, African & Middle Eastern countries.Underground Economy, Tax Noncompliance, Firm Characteristics, Interval Regression

CONJOINT ANALYSIS OF THE MID-ATLANTIC FOOD-FISH MARKET FOR FARM-RAISED HYBRID STRIPED BASS

Conjoint analysis was used to examine buyer preferences toward farm-raised hybrid striped bass at the wholesale, retail, and restaurant levels. Low price and round form were found to be important attributes in the product preference rating for the wholesale and retail markets. The filleted form contributed the most to restaurants' preference rating. Following these, larger fish size was preferred by all markets.Agribusiness,