The Trade and FDI Effects of EMU Enlargement

This paper considers the nature and the distribution of trade and FDI effects of a potential enlargement of the European Monetary Union (EMU) to the ten countries that obtained EU membership in 2004. One-way and two-way error component gravity models are estimated using a dataset of unbalanced panel data that combines bilateral trade flows among 29 countries and the distribution of outward FDI stocks among these countries. The results reveal a complementarity between trade and investment and a relationship between trade and exchange rate volatility that depends on the sign of bilateral trade balances. Using a simulation-based technique, we find that estimates of FDI effects of EMU range between 18.5 percent for Poland and 30 percent for Hungary.EMU, exchange rate volatility, foreign investment, trade diversion, vertical integration

Impact of Rainfall on Coliform and Parasite Levels in Local Groundwater

Undergraduate Basi

How Governance Regimes Shape the Implementation of Water Reuse Schemes

The governance dimensions of water reuse scheme development and operation, such as policies and regulatory frameworks, and public involvement and stakeholder collaboration, can serve to both facilitate and constrain wider adoption of water reuse practices. This paper explores the significance and underlying structure of the key governance challenges facing the water reuse sector in Europe. It presents empirical evidence from interviews and focus group sessions conducted at four water reuse schemes: an indirect potable reuse scheme at Torreele (Belgium), the urban reuse of treated municipal wastewater at the London Olympic Park (United Kingdom) and at Sabadell (Spain), and the reuse of agro-industrial effluent for irrigation at Capitanata (Italy). The findings underscore the importance of clarity in policy arrangements around water reuse, as well as of the financial competitiveness of reuse projects compared to alternative water supply options. Operators of water reuse schemes expressed a preference for water quality standards, which focus on appropriateness for use rather than over-emphasise the waters’ origin so that unnecessary treatment and costs can be avoided. Positive public support was widely acknowledged as an important factor in the success or failure of water reuse schemes. We conclude that constructive institutional relationships underpin many of the challenges faced by reuse scheme operators and that greater emphasis should be given to building confidence and gaining trust in water service providers through early identification of how governance regimes shape the viability of new scheme

Tidal Evolution of a Secularly Interacting Planetary System

In a multi-planet system, a gradual change in one planet's semi-major axis will affect the eccentricities of all the planets, as angular momentum is distributed via secular interactions. If tidal dissipation in the planet is the cause of the change in semi-major axis, it also damps that planet's eccentricity, which in turn also contributes to the evolution of all the eccentricities. Formulae quantifying the combined effects on the whole system due to semi-major axis changes, as well as eccentricity damping, are derived here for a two-planet system. The CoRoT 7 system is considered as an example.Comment: Accepted for publication in the Astrophysical Journal, 17 pages, including 1 figur

Is it really possible to build a bridge between cost-benefit analysis and cost-effectiveness analysis?

Cost-benefit analysis (CBA) is a recognised as the economic evaluation technique that accords most with the underlying principles of standard welfare economic theory. However, due to problems associated with the technique, economists evaluating resources allocation decisions in health care have most often used cost-effective analysis (CEA), in which health benefits are expressed in non-monetary units. As a result, attempts have been made to build a welfare economic bridge between cost-benefit analysis (CBA) and cost-effectiveness analysis (CEA). In this paper, we develops these attempts and finds that, while assumptions can be made to facilitate a constant willingness-to-pay per unit of health outcome, these restrictions are highly unrealistic. We develop an impossibility theorem that shows it is not possible to link CBA and CEA if: (i) the axioms of expected utility theory hold; (ii) the quality-adjusted life-year (QALY) model is valid in a welfare economic sense; and (iii) illness affects the ability to enjoy consumption. We conclude that, within a welfare economic framework, it would be unwise to rely on a link between CBA and CEA in economic evaluations

Valuing malaria morbidity: results from a global meta-analysis

The risk of malaria transmission worldwide is expected to increase with climate change. In order to estimate the welfare implications, we analyse the factors that explain willingness to pay to avoid malaria morbidity using a meta-analysis. We fail to replicate a previous meta-analysis, despite using a near-identical dataset. Thus, this paper outlines a more robust approach to analysing such data. We compare multiple regression models via a cross-validation exercise to assess best fit, the first in the meta-analysis literature to do so. Weighted random effects gives best fit. Confirming previous studies, we find that revealed preferences are significantly lower than stated preferences; and that there is no significant difference in the willingness to pay for policies that prevent (pre-morbidity) or treat malaria (post-morbidity). We add two new results to the morbidity literature: (1) Age has a non-linear impact on mean willingness to pay and (2) willingness to pay decreases if malaria policies target communities instead of individual households

The Trade and FDI Effects of EMU Enlargement

This paper considers the nature and the distribution of trade and FDI effects of a potential enlargement of the European Monetary Union (EMU) to the ten countries that obtained EU membership in 2004. Intuitively, the implementation of a single currency for these countries means replacing several fluctuating currencies by a common currency. This gives rise to both “level” and “risk” effects of reduced currency movements on trade and investment. Another factor is the nature of the link between trade and FDI. This is also important not only because cross-border factor flows are becoming increasingly important, but also the international trade literature has long recognized that cross-border factor flows and trade in goods and services can be substitutes or complements. Given this background, one-way and two-way error component gravity models are estimated to examine for these theoretical expectations within a dataset of unbalanced panel data that combines bilateral trade flows among 29 countries and the distribution of outward FDI stocks among these countries (including the 10 new EU members). The data generally cover the period from 1990 to 2004. Our empirical results convincingly support: (i) a complementarity between trade and investment, (ii) a relationship between trade and exchange rate volatility that depends on the sign of bilateral trade balances, (iii) a positive effect of EU on trade and investment, and (iv) a positive effect of EMU on foreign investment. Using a simulation-based technique, we find that estimates of FDI effects of EMU range between 18.5 percent for Poland and 30 percent for Hungary

The potential of water markets to allocate water between industry, agriculture, and public water utilities as an adaptation mechanism to climate change

One of the climate change scenarios that have been developed for the Netherlands predicts hotter and drier summers and a substantial drop in river discharge. This might lead to water scarcity with detrimental economic and environmental effects. Among the possible adaptation responses to climate change-induced water scarcity, the re-allocation of water resources among competing uses should also be considered. In this paper, we extend and apply a computable general equilibrium (CGE) model to assess the potential of water markets (water allocation according to its shadow price) to guide the allocation of scarce water across agriculture, manufacturing, and public water supply. We develop four scenarios in which the scope of water markets is increased from industry-specific to economy-wide. The results show that the agricultural sector bears nearly all of the losses from a new water-scarce climate, while the manufacturing sectors are able to mitigate their losses to a large extent by technical measures. Extending the scope of water markets unambiguously increases economic output and results in a re-allocation of water to the manufacturing sector from the agricultural sector and from public water services. If, perhaps for political reasons, public water services are excluded from water trading, water is re-allocated from agriculture to manufacturing. Depending on which sectors are included, the construction of a water market can have negative or positive effects on a sector’s output, and although the implementation of water markets may be positive for overall economic output and can hence assist adaptation, the effect on vulnerable or societally sensitive economic sectors, such as public water, should be taken into account when implementing such a market

Thyroidal and Extrathyroidal Requirements for Iodine and Selenium:A Combined Evolutionary and (Patho)Physiological Approach

Iodide is an antioxidant, oxidant and thyroid hormone constituent. Selenoproteins are needed for triiodothyronine synthesis, its deactivation and iodine release. They also protect thyroidal and extrathyroidal tissues from hydrogen peroxide used in the ‘peroxidase partner system’. This system produces thyroid hormone and reactive iodine in exocrine glands to kill microbes. Exocrine glands recycle iodine and with high urinary clearance require constant dietary supply, unlike the thyroid. Disbalanced iodine-selenium explains relations between thyroid autoimmune disease (TAD) and cancer of thyroid and exocrine organs, notably stomach, breast, and prostate. Seafood is iodine unconstrained, but selenium constrained. Terrestrial food contains little iodine while selenium ranges from highly deficient to highly toxic. Iodine vs. TAD is U-shaped, but only low selenium relates to TAD. Oxidative stress from low selenium, and infection from disbalanced iodine-selenium, may generate cancer of thyroid and exocrine glands. Traditional Japanese diet resembles our ancient seashore-based diet and relates to aforementioned diseases. Adequate iodine might be in the milligram range but is toxic at low selenium. Optimal selenoprotein-P at 105 µg selenium/day agrees with Japanese intakes. Selenium upper limit may remain at 300–400 µg/day. Seafood combines iodine, selenium and other critical nutrients. It brings us back to the seashore diet that made us what we currently still are

Quantifying the Impoverishing Effects of Purchasing Medicines: A Cross-Country Comparison of the Affordability of Medicines in the Developing World

Laurens Niëns and colleagues estimate the impoverishing effects of four medicines in 16 low- and middle-income countries using the impoverishment method as a metric of affordability and show that medicine purchases could impoverish large numbers of people