From forward to spot prices: Producers, retailers and loss averse consumers in electricity markets

The benefits of smoothing demand peaks in the electricity market has been widely recognised. European countries such as Spain and some of the Scandinavian countries have recently given to the consumers the possibility to face the spot prices instead of having a fixed tariffs determined by retailers. This paper develops a theoretical model to study the relations between risk averse consumers, retailers and producers, both in the spot and in the forward markets when consumers are able to choose between fixed tariffs and the wholesale prices. The model is calibrated on a real market case - Spain - where since 2014 spot tariffs were introduced beside the flat tariffs for household consumers. Finally, simulations of agents behavior and markets performance, depending on consumers risk aversion and the number of producers, are used to analyse the implications from the model. Our results show that the quantities the retailers and the producers trade in the forward market are positively related with the loss aversion of consumers. The quantities bought by the retailers in the forward market are negatively related with the skewness of the spot prices. On the contrary, quantity sold forward by producers are positively related with the skewness of the spot prices (high probability of getting high prices increase the forward sale) and with the total market demand. In the spot market, the degree of loss aversion of consumers determine the quantity the retailers buy in the spot market but does not have a direct effect on the spot price

Liquidity Creation and Bank Capital

This paper aims to evaluate the relationship between capital and liquidity following the implementation of the Basel III rules. These regulatory measures target both increased capital ratios and a reduction of banks’ maturity transformation risk , which could result in excessive constraints on bank liquidity creation, thereby negatively affecting economic growth. Using a simultaneous equation model, we find a bi-causal negative relationship, which suggests that banks may reduce liquidity creation as capital increases; and when liquidity creation increases, banks reduce capital ratios. Our results therefore imply a trade-off between financial stability (higher capital, reduced risk) and economic growth (liquidity creation)

Intrinsic colors and ages of extremely red elliptical galaxies at high redshift

In order to know the formation epoch of the oldest elliptical galaxies as a function of mass and observed redshift, a statistical analysis for 333 extremely red objects (EROs) classified as old galaxies (OGs) at 0.8<z<2.3 is carried out. Once we get M_V and (B-V) at rest for each galaxy, we calculate the average variation of this intrinsic color with redshift and derive the average age through a synthesis model (the code for the calculation of the age has been made publicly available). The average gradient of the (B-V) color at rest of EROs/OGs is 0.07-0.10 Gyr^{-1} for a fixed luminosity. The stars in these extremely red elliptical galaxies were formed when the Universe was ~2 Gyr old on average. We have not found a significant enough dependence on the observed redshift and stellar mass: dt_{formation}/dt_{observed}=-0.46+/-0.32, dt_{formation}/(d log_10 M_*)=-0.81+/-0.98 Gyr. This fits a scenario in which the stellar formation of the objects that we denominate as EROs-OGs is more intense at higher redshifts, at which the stellar populations of the most massive galaxies form earlier than or at the same time as less massive galaxies.Comment: accepted to be published in A

Spectroscopic characterisation of the stellar content of ultra diffuse galaxies

Understanding the peculiar properties of Ultra Diffuse Galaxies (UDGs) via spectroscopic analysis is a challenging task requiring very deep observations and exquisite data reduction. In this work we perform one of the most complete characterisations of the stellar component of UDGs to date using deep optical spectroscopic data from OSIRIS at GTC. We measure radial and rotation velocities, star formation histories (SFH) and mean population parameters, such as ages and metallicities, for a sample of five UDG candidates in the Coma cluster. From the radial velocities, we confirm the Coma membership of these galaxies. We find that their rotation properties, if detected at all, are compatible with dwarf-like galaxies. The SFHs of the UDG are dominated by old (~ 7 Gyr), metal-poor ([M/H] ~ -1.1) and alpha-enhanced ([Mg/Fe] ~ 0.4) populations followed by a smooth or episodic decline which halted ~ 2 Gyr ago, possibly a sign of cluster-induced quenching. We find no obvious correlation between individual SFH shapes and any UDG morphological properties. The recovered stellar properties for UDGs are similar to those found for DDO44, a local UDG analogue resolved into stars. We conclude that the UDGs in our sample are extended dwarfs whose properties are likely the outcome of both internal processes, such as bursty SFHs and/or high-spin haloes, as well as environmental effects within the Coma cluster.Comment: Accepted for publication in MNRA

The number density of superdense early-type galaxies at 1<z<2 and the local cluster galaxies

Many of the early-type galaxies observed so far at z>1 turned out to have smaller radii with respect to that of a typical present-day early-type galaxy with comparable mass. This has generated the conviction that in the past early-type galaxies were more compact, hence denser, and that as a consequence, they should have increased their radius across the time to reconcile with the present-day ones. However, observations have not yet established whether the population of early-types in the early Universe was fully represented by compact galaxies nor if they were so much more numerous than in the present-day Universe to require an evolution of their sizes. Here we report the results of a study based on a complete sample of 34 early-type galaxies at 0.9<z_{spec}<1.92. We find a majority (62 per cent) of normal early-type galaxies similar to typical local ones, co-existing with compact early-types from ~2 to ~6 times smaller in spite of the same mass and redshift. The co-existence of normal and compact early-type galaxies at ~1.5 suggests that their build-up taken place in the first 3-4 Gyr, followed distinct paths. Also, we find that the number density of compact early-types at ~1.5 is consistent with the lower limits of the local number density of compact early-types derived from local clusters of galaxies. The similar number of compact early-types found in the early and in the present day Universe frustrates the hypothesized effective radius evolution while provides evidence that also compact ETGs were as we see them today 9-10 Gyr ago. Finally, the fact that (at least) most of the compact ETGs at high-z are accounted for by compact early-types in local cluster of galaxies implies that the former are the direct progenitors of the compact early-type cluster galaxies establishing a direct link between environment and early phases of assembly of ETGs.Comment: Published on MNRAS Letters (5 pages, 2 figures, 1 table

Measuring the sustainable behaviour and satisfaction with services in cruise tourism: a Naples case study

The main aim of this paper is to analyse cruise tourists’ sustainable behaviour and their level of satisfaction in Naples as one of the main Mediterranean ports receiving this type of tourism. The usage of a semi-structured questionnaire, administered to 1180 cruise tourists, allows us to group cruise tourists into clusters and analyse all the elements of two alternate types of behaviour: environmental and social. We have developed an IPA analysis and use ordered logit models to assess which aspects are influencing the general satisfaction level. Our findings highlight that over 80% of visitors indicated that they are highly aware of the need to dispose of trash in a sustainable way, as well as differences between different cluster preferences. The findings, although drawn from only one destination, may be useful for practitioners and policy makers by allowing them to pinpoint and understand specific determinants of the socio-economic effects of cruise tourism on a destination, by taking into account the role of sustainable services

Plain fundamentals of Fundamental Planes: Analytics and algorithms

The coefficients a and b of the Fundamental Plane relation R ~ Sigma^a I^b depend on whether one minimizes the scatter in the R direction or orthogonal to the Plane. We provide explicit expressions for a and b (and confidence limits) in terms of the covariances between logR, logSigma and logI. Our analysis is more generally applicable to any other correlations between three variables: e.g., the color-magnitude-Sigma relation, the L-Sigma-Mbh relation, or the relation between the X-ray luminosity, Sunyaev-Zeldovich decrement and optical richness of a cluster, so we provide IDL code which implements these ideas, and we show how our analysis generalizes further to correlations between more than three variables. We show how to account for correlated errors and selection effects, and quantify the difference between the direct, inverse and orthogonal fit coefficients. We show that the three vectors associated with the Fundamental Plane can all be written as simple combinations of a and b because the distribution of I is much broader than that of Sigma, and Sigma and I are only weakly correlated. Why this should be so for galaxies is a fundamental open question about the physics of early-type galaxy formation. If luminosity evolution is differential, and Rs and Sigmas do not evolve, then this is just an accident: Sigma and I must have been correlated in the past. On the other hand, if the (lack of) correlation is similar to that at the present time, then differential luminosity evolution must have been accompanied by structural evolution. A model in which the luminosities of low-L galaxies evolve more rapidly than do those of higher-L galaxies is able to produce the observed decrease in a (by a factor of 2 at z~1) while having b decrease by only about 20 percent. In such a model, the Mdyn/L ratio is a steeper function of Mdyn at higher z.Comment: 11 pages, 1 figure, associated IDL code, MNRAS accepte

Strong size evolution of the most massive galaxies since z~2

Using the combined capabilities of the large near-infrared Palomar/DEEP-2 survey, and the superb resolution of the ACS HST camera, we explore the size evolution of 831 very massive galaxies (M*>10^{11}h_{70}^{-2}M_sun) since z~2. We split our sample according to their light concentration using the Sersic index n. At a given stellar mass, both low (n2.5) concentrated objects were much smaller in the past than their local massive counterparts. This evolution is particularly strong for the highly concentrated (spheroid-like) objects. At z~1.5, massive spheroid-like objects were a factor of 4(+-0.4) smaller (i.e. almost two orders of magnitudes denser) than those we see today. These small sized, high mass galaxies do not exist in the nearby Universe, suggesting that this population merged with other galaxies over several billion years to form the largest galaxies we see today.Comment: MNRAS in press, 13 pages, 11 figures. Data Table will be published in its integrity in the MNRAS online versio

On the central stellar mass density and the inside-out growth of early-type galaxies

[Abridged] In this paper we derive the central stellar mass density within a fixed radius and the effective stellar mass density within the effective radius for a complete sample of 34 ETGs morphologically selected at 0.9<z_{spec}<2 and compare them with those derived for a sample of ~900 local ETGs in the same mass range. We find that the central stellar mass density of high-z ETGs spans just an order of magnitude and it is similar to the one of local ETGs as actually found in previous studies.However, we find that the effective stellar mass density of high-z ETGs spans three orders of magnitude, exactly as the local ETGs and that it is similar to the effective stellar mass density of local ETGs showing that it has not changed since z~1.5, in the last 9-10 Gyr. Thus, the wide spread of the effective stellar mass density observed up to z~1.5 must originate earlier, at z>2. Also, we show that the small scatter of the central mass density of ETGs compared to the large scatter of the effective mass density is simply a peculiar feature of the Sersic profile hence, independent of redshift and of any assembly history experienced by galaxies. Thus, it has no connection with the possible inside-out growth of ETGs. Finally, we find a tight correlation between the central stellar mass density and the total stellar mass of ETGs in the sense that the central mass density increases with mass as M^{~0.6}. This implies that the fraction of the central stellar mass of ETGs decreases with the mass of the galaxy. These correlations are valid for the whole population of ETGs considered independently of their redshift suggesting that they originate in the early-phases of their formation.Comment: 11 pages, 6 figures. Accepted for publication in MNRAS (MNRAS version