Quantum diffusion of prices and profits

We discuss the time evolution of quotation of stocks and commodities and show that quantum-like correction to the orthodox Bachelier model may be important. Our analysis shows that traders act as a sort of (quantum) tomograph and their strategies can be reproduced from the corresponding Wigner functions. The proposed interpretation of the chaotic movement of market prices imply that Orstein-Uhlenbeck corrections to the Bachelier model should qualitatively matter for large $\gamma$ scales. We also propose a solution to the currency preference paradox.

The Paradox of Green Commodities

In this dissertation, I establish a theoretical and empirical critique of modern forms of environmentally sustainable technology. Theoretically, I critique the application of environmentally sustainable technologies in modern capitalist economies using the treadmill of production theory and metabolic rift theory. I also expand on these theories by developing an analytical concept – the displacement paradox. The displacement paradox refers to a counterintuitive phenomenon, where green technologies expand rather displace traditional production processes. Empirically, I assess the assumptions of the displacement paradox by analyzing the relationship between organic farming and agrochemical application, organic farming and greenhouse gas emissions, organic farming and water pollution, and alternatively fueled vehicles and total fuel consumption per vehicle. In each of these cases, I find that green technology (in the form of organic farming and alternatively fueled vehicles) is not displacing traditional production processes, and instead expanding alongside them. I argue that these findings are a result of the broader socioeconomic structure that green technology is produced under. Specifically, I contend that because current socioeconomic systems are established around traditional production processes, to substantially reduce environmental degradation, green technologies must operate as a social and technological counterforce to traditional production processes. Currently, the green technologies explored in this dissertation act as a technological alternatives to traditional production processes, making them commodities that sustain the current structure of social relations, as opposed to social and technological counterforces to environmentally hazardous forms of production. I conclude that in order for green technologies to successfully reduce environmental degradation, they must be established under social conditions that support their use over traditional production processes

Social Ecography : International trade, network analysis, and an Emmanuelian conceptualization of ecological unequal exchange

This thesis demonstrates how network analysis, ecological economics and the world-system perspective can be combined into an ecographic framework that can yield new insights into the underlying structure of the world-economy as well as its surrounding world-ecology. In particular, the thesis focuses on the structural theory of ecological unequal exchange, a theory suggesting a relationship between positionality within the world-system and unequal exchange of biophysical resources. Using formal tools from social network analysis, the theory is tested on empirical trade data for two commodity types – primary agricultural goods and fuel commodities – for the period 1995-1999. As the selected commodities can be seen as adequate representations of the third Ricardian production factor, i.e. natural resources, ecological unequal exchange as conceptualized in this thesis is more in line with the original Emmanuelian factor-cost theory than previous approaches. Here, similar to Emmanuel’s formulation, it is a theory about factor cost differentials. Whereas the theory mostly holds true in the case of fuel commodities, the analysis of primary agricultural commodities actually points to an inverse relationship between structural positionality and ecological unequal exchange. This could point to a fundamental difference between these two types of commodities, for instance as reflected in an observed ecological Leontief paradox, which underlines the need for more detailed, and less typological, treatments of ecological unequal exchange

IS LEONTIEF'S PARADOX APPLICABLE TO U.S. AGRICULTURAL TRADE?

The labor and capital intensities of U.S. agricultural trade during 1973, 1974, and 1976 are examined through an input-output model. The empirical results indicate that U.S. agricultural exports tend to be more capital intensive while agricultural imports are more labor intensive, a result counter to Leontief's paradox.International Relations/Trade,

Going against the flow: A critical analysis of virtual water trade in the context of India's National River Linking Programme

Virtual water trade has been promoted as a tool to address national and regional water scarcity. In the context of international (food) trade, this concept has been applied with a view to optimize the flow of commodities considering the water endowments of nations. The concept states that water-rich countries should produce and export water intensive commodities (which indirectly carry embedded water needed for producing them) to water-scarce countries, thereby enabling the water-scarce countries to divert their precious water resources to alternative, higher productivity uses.\ud While progress has been made on quantifying virtual water flows between countries, there exists little information on virtual water trade within large countries like India. This report quantifies and critically analyzes inter-state virtual water flows in India in the context of a large inter-basin transfer plan of the Government of India.\ud Our analysis shows that the existing pattern of inter-state virtual water trade is exacerbating scarcities in already water scarce states and that rather than being dictated by water endowments, virtual water flows are influenced by other factors such as "per capita gross cropped area" and "access to secured markets". We therefore argue that in order to have a comprehensive understanding of virtual water trade, non-water factors of production need to be taken into consideration

Addressing India’s water challenge 2050: the virtual water trade option

The Government of India, on directions from the Supreme Court in 2002 and advice from the National Water Development Agency (NWDA), proposed an estimated US$120 billion National River Linking Project (NRLP) which envisages linking 37 Himalayan and Peninsular rivers (Figure 1; NCIWRD 1999). Doing this will form a gigantic South Asian water grid which will annually handle 178×109 m3/yr of interbasin water transfer; build 12,500 km of canals; generate 34 gigawatts of hydropower; add 35 million hectares (Mha) to India’s irrigated areas; and generate inland navigation benefits (IWMI 2003; NWDA 2006; Gupta and van der Zaag 2007)

Complexity and Approximation of the Continuous Network Design Problem

We revisit a classical problem in transportation, known as the continuous (bilevel) network design problem, CNDP for short. We are given a graph for which the latency of each edge depends on the ratio of the edge flow and the capacity installed. The goal is to find an optimal investment in edge capacities so as to minimize the sum of the routing cost of the induced Wardrop equilibrium and the investment cost. While this problem is considered as challenging in the literature, its complexity status was still unknown. We close this gap showing that CNDP is strongly NP-complete and APX-hard, both on directed and undirected networks and even for instances with affine latencies. As for the approximation of the problem, we first provide a detailed analysis for a heuristic studied by Marcotte for the special case of monomial latency functions (Mathematical Programming, Vol.~34, 1986). Specifically, we derive a closed form expression of its approximation guarantee for arbitrary sets S of allowed latency functions. Second, we propose a different approximation algorithm and show that it has the same approximation guarantee. As our final -- and arguably most interesting -- result regarding approximation, we show that using the better of the two approximation algorithms results in a strictly improved approximation guarantee for which we give a closed form expression. For affine latencies, e.g., this algorithm achieves a 1.195-approximation which improves on the 5/4 that has been shown before by Marcotte. We finally discuss the case of hard budget constraints on the capacity investment.Comment: 27 page

04-02 "The Paradox of Agricultural Subsidies: Measurement Issues, Agricultural Dumping, and Policy Reform"

World trade talks have foundered recently, in part due to developing country demands that industrialized countries reduce their large farm support programs to allow poor farmers in the global South to compete more fairly. Claiming that Northern farm subsidies amount to over $1 billion a day, and that the average European cow receives more in subsidies than the nearly three billion people who live on less than two dollars a day, Southern governments, farmer groups, and international aid groups have demanded steep cuts in Northern agricultural subsidies. This paper examines the economic and policy aspects of the subsidy debate. We begin with an examination of the most widely used measure of agricultural support, the OECD’s Producer Support Estimate. We identify several important flaws in its application and interpretation as a reliable subsidy measure, highlighting the particular problems this can cause in measuring the levels of farm support in developing countries whose economies may not be fully integrated with the world economy. We then review the results of economic modeling of trade liberalization and subsidy reduction, finding that overall such measures are unlikely to raise producer prices to a sufficient degree to bring relief from alleged agricultural dumping to Southern farmers by bringing export prices above production costs. We briefly examine one alternative explanation for low commodity prices, the oligopolistic nature of agricultural trade. We conclude with an outline for policy reforms at the global and national levels to address measurement flaws, raise commodity prices, and reduce the undercutting of developing country farmers by below-cost agricultural exports from the North. Throughout, we draw on US-Mexico trade in maize as an illustrative case study. We conclude that subsidy reduction is unlikely to reduce economic pressures on Mexican maize producers from below-cost US exports, nor are such measures likely to improve the economic prospects for similar small-scale farmers growing food primarily for subsistence and the internal market. Instead, policy reforms should focus on ending agricultural dumping, reducing global commodity overproduction in key crops, and reducing the market power of agribusiness conglomerates.