On the role of regulatory standards: Specification and some empirical evidence from motor vehicle fuel economy

This paper proposes a simple model to evaluate the role of regulatory controls. It is formulated so as to enable drawing empirical conclusions on the basis of usual hypothesis tests. Three potential roles of standards are examined they can act as penalties for non-compliant firms, as norms to which all firms converge, and as controls with cumulative impact over time. I test this specification focusing on automobile fuel economy (CAFE) standards that have been imposed in the US since 1978, using annual data from each major auto manufacturer. Results show that CAFE rules, functioning mainly as penalties, have been an important determinant of car fuel consumption. The hypothesis that standards acted also as norms is rejected. Finally, the automobile industry as a whole became less constrained by regulations over the years because of stagnating CAFE standards since 1990 and progress in vehicle technology.

The SATIN component system - a metamodel for engineering adaptable mobile systems

Mobile computing devices, such as personal digital assistants and mobile phones, are becoming increasingly popular, smaller, and more capable. We argue that mobile systems should be able to adapt to changing requirements and execution environments. Adaptation requires the ability-to reconfigure the deployed code base on a mobile device. Such reconfiguration is considerably simplified if mobile applications are component-oriented rather than monolithic blocks of code. We present the SATIN (system adaptation targeting integrated networks) component metamodel, a lightweight local component metamodel that offers the flexible use of logical mobility primitives to reconfigure the software system by dynamically transferring code. The metamodel is implemented in the SATIN middleware system, a component-based mobile computing middleware that uses the mobility primitives defined in the metamodel to reconfigure both itself and applications that it hosts. We demonstrate the suitability of SATIN in terms of lightweightedness, flexibility, and reusability for the creation of adaptable mobile systems by using it to implement, port, and evaluate a number of existing and new applications, including an active network platform developed for satellite communication at the European space agency. These applications exhibit different aspects of adaptation and demonstrate the flexibility of the approach and the advantages gaine

International Price Dispersion and the Direction of Trade

The importance of trade costs in segmenting product markets cannot be captured by considering aggregate prices or in the absence of information on the direction of trade. We address this problem by utilizing product-specific prices along with cross-sectional productivity measures and bilateral trade flows that allow us to identify the probable source of any one product. Our empirical approach is in line with the theoretical framework of Eaton and Kortum (2002) and the variation of this proposed in Anderson and van Wincoop (2004). The data are shown to be consistent with this framework. In particular, trade costs in the form of transportation and distribution costs are important in determining international price differences and segmenting international markets.segmented markets, trade costs, transport costs, distribution costs, market size, international price dispersion.

Global versus local shocks in micro price dynamics

A number of recent papers point to the importance of distinguishing between the price reaction to micro and macro shocks in order to reconcile the volatility of individual prices with the observed persistence of aggregate inflation. We emphasize instead the importance of distinguishing between global and local shocks. We exploit a panel of 276 micro price levels collected on a semi-annual frequency from 1990 to 2010 across 88 cities in 59 countries around the world, that enables us to distinguish between different types (local and global) of micro and macro shocks. We find that global shocks have more persistent effects on prices as compared to local ones e.g. prices respond faster to local macro shocks than to global micro ones, implying that the relatively slow response of prices to macro shocks documented in recent studies comes from global rather than local sources. Global macro shocks have the most persistent effect on prices, with the majority of goods and locations sharing a single source of trend over time stemming from these shocks. Finally, both local macro and local micro shocks are associated with relatively fast price convergence.global shocks, local shocks, micro shocks, macro shocks, price adjustment, micro-macro gap, price-setting models, micro prices.

Determinants of Public Health Outcomes: A Macroeconomic Perspective

This paper investigates the nature of the aggregate production function of health services. We build a model to analyze the role of public policy in determining social health outcomes, taking into account households choices concerning education, health related expenditures and saving. In the model, education has a positive external effect on health outcomes. Next, we perform an empirical analysis using a data set covering 80 countries from 1961 to 1995. We find strong evidence for a dual role of education as a determinant of health outcomes. In particular, we find that society’s tertiary education attainment levels contribute positively to how many years an individual should expect to live, in addition to the role that basic education plays for life expectancy at the individual household level. This finding uncovers a key externality of the educational sector on the ability of society to take advantage of best practices in the health service sector.Education, life expectancy, external effects, absorptive capacity.

An Empirical analysis of electricity consumption in Cyprus

The paper presents the first empirical analysis of electricity consumption in Cyprus. Using annual data from 1960 to 2004, we have examined electricity use in the residential and the services sectors, which are the fastest-growing electricity consumers in the island, and its interaction with income, prices and the weather. The analysis was performed with the aid of time series analysis techniques such as unit root tests with and without a structural break in levels, cointegration tests, Vector Error Correction models, Granger causality tests and impulse response functions. Results show long-term elasticities of electricity use above unity for income, and of the order of -0.3 to -0.4 for prices. In the short term electricity consumption is rather inelastic, mostly affected by weather fluctuations. Granger causality tests confirm exogeneity of electricity prices and bidirectional causality between residential electricity consumption and private income. The commercial sector is less elastic and reverts faster to equilibrium than the residential sector. Despite the relatively small sample size, results reported here are quite robust and can be used for forecasts and policy analyses.unit root, structural break, cointegration, Granger causality, impulse response