The productive role of public infrastructure: A critical review of recent literature

The publication of two empirical articles by Aschauer in 1989 brought a renewed interest in the study of the productive role of public infrastructure. Since then, many empirical studies as well as a few surveys have been published not only in regional science journals but also in main stream economics journals. The interest in the subject and the controversy are both high, which constitute two major ingredients for our critical review of recent literature. Our purpose in this paper is to evaluate the recent contributions identifying approaches followed, results obtained, major shortcomings of the empirical evidence produced, areas of strong controversy and promising methodologies for future research.

A SCADA System for Energy Management in Intelligent Buildings

This paper develops an energy management platform for intelligent buildings using a SCADA system (Supervisory Control And Data Acquisition). This SCADA system integrates different types of information coming from the several technologies present in modern buildings (control of ventilation, temperature, illumination, etc.). The developed control strategy implements an hierarchical cascade controller where inner loops are performed by local PLCs (Programmable Logic Controller), and the outer loop is managed by a centralized SCADA system, which interacts with the entire local PLC network. In this paper a Predictive Controller is implemented above the centralized SCADA platform. Tests applied to the control of temperature and luminosity in huge-area rooms are presented. The developed Predictive Controller optimizes the satisfaction of user explicit preferences coming from several distributed user-interfaces, subjected to the overall constraints of energy waste minimization. In order to run the Predictive Controller with the SCADA platform a communication channel was developed to allow communication between the SCADA system and the MATLAB application where the Predictive Controller runs

Risk perceptions, risk attitudes and the formation of consumer acceptance of Genetically Modified (GM) food

The influence of risk perception and risk attitudes in the process of accepting genetically modified (GM) food is often ignored, and particularly whether both constructs (latent variables) have a combined effect in explaining consumer acceptance. Similarly, the inclusion of organic product standards juxtaposed to GM food is unknown. This paper attempts to shed some light on this question by examining the decision making process through the use of structural equation modeling (SEM). We use survey data from Spain and a set of theoretical constructs that allow us to identify independent mechanisms underlying individuals’ risk decision making. Our results suggest that the conceptualized model captures the decision making process, and that both perceptions and attitudes toward risk have independent effects on consumer acceptance. However, the effect from risk perception is larger in intensity. Finally, attitudes towards organic production emerge as an informative determinant of attitudes towards GM food.risk perceptions, consumer acceptance, risk attitudes, and GM food., Agricultural and Food Policy,

To Be or Not To Be in Office Again, That is the Question: Political Business Cycles with Local Governments

Most opportunistic -type models of political business cycles tend to posit a given objective for incumbents: maximisation of re-election chances. Though taking an opportunistic view too, we suggest a new explanation for a fiscal policy cycle: the incumbents concern with her own welfare in cases of victory and defeat. This rationale addresses local policy-making in particular. An equilibrium perfectforesight model is designed which totally dispenses with any form of irrationality (namely, on the part of voters) or the common objective functions (re-election chances). Being well grounded in basic microeconomic theory (welfare maximisation by the individual agent), our model provides another foundation for the emergence of political business cycles at the local level. The empirical plausibility of theoretical predictions is then tested on Portuguese municipal data ranging from 1977 to 1993. The estimation of an error-components econometric framework finds evidence in favour of the proposed explanation and enlightens the role played by several politicoeconomic determinants of local governments investment outlays, such as electoral calendar, re-candidacy decisions, political cohesion and intergovernmental capital transfers.local public finance; public choice; political business cycles; elections; Portugal

PORTUGUESE AVERAGE COST OF CAPITAL

The oldest Portuguese share index still being calculated is the BVL/PSI-General, one which started the daily series on 5/Jan/1988 with a base value of 1000 points. Everyday a single value is computed based on the closing prices of all the shares included in the sample. Also, all corporate events affecting the price of any share beyond market sentiment are taken into account through proper adjustments, either in the numerator or the denominator of the formula. However, for dates before January 1988, there is nothing comparable to this index since the two different series known either never disclosed the methodology adopted to calculate the index or followed solutions not compatible with the above index. The present paper explains the solutions adopted to replicate as closely as possible the methodology of the BVL-General index to the main market of the Lisbon Exchange for the period 1978 – 1987. This is the first estimate of the historical Equity Risk Premium in Portugal above short-term riskfree rate from the re-opening of the market following the Carnation Revolution (and the accompanying nationalizations), to the present. In showing a value of the same order of magnitude found in other countries, the paper invites further studies on the effects of political decisions such as privatizations and joining the European Union. JEL codes: