Department of Economics (ECON) Titler
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Who Gains?Boom, Anette; Schwenen, Sebastian (Frederiksberg, 2013)[Flere oplysninger][Færre oplysninger]
Resume: We examine welfare e ects of real-time pricing in electricity markets. Before stochastic energy demand is known, competitive retailers contract with nal consumers who exogenously do not have real-time meters. After demand is realized, two electricity generators compete in a uniform price auction to satisfy demand from retailers acting on behalf of subscribed customers and from consumers with real-time meters. Increasing the number of consumers on real-time pricing does not always increase welfare since risk-averse consumers dislike uncertain and high prices arising through market power. In the Bertrand case, welfare is the same with all or no consumers on smart meters. URI: http://hdl.handle.net/10398/8766 Filer i denne post: 1
boom_schwenen_1-2013.pdf (532.8Kb) -
Nielsen, Steen; Overgaard Olesen, Jan (København, 2000)[Flere oplysninger][Færre oplysninger]
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Three papers laying the foundation for regional CGE models with agglomeration characteristicsTermansen, Lars Brømsøe (Frederiksberg, 2008)[Flere oplysninger][Færre oplysninger]
Resume: The paper analyses the effects of introducing taxes and regional transfers on the equilibrium properties in a standard Core-Periphery model. A central government levies taxes on production factors and redistributes the revenue to all agents regardless of their location. In the case of Core-Periphery economy this is in effect a re-allocation of agglomeration rents. Simulations show that taxes and transfers alter the Core-Periphery model’s properties by moving the Break and Sustain points. The range of freeness of trade with Core-Periphery outcomes is reduced for transfers to the periphery, and increased for transfers to the core. The width of the overlap where the models exhibit hysteresis effects remains the same regardless of the transfers. The analysis reveals that in the Core-Periphery outcome the agglomeration rents can be taxed without exhausting the core’s scale effects. The tax revenues can then be redistributed such that periphery regions and the central government have incentives in promoting core regions, which function as industrial locomotives for the whole economy. URI: http://hdl.handle.net/10398/7739 Filer i denne post: 1
Lars_B_Termansen.pdf (1.846Mb) -
An Optimal Insurance ApproachOlai Hansen, Bodil; Keiding, Hans (København, 2000)[Flere oplysninger][Færre oplysninger]
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Med særligt henblik på grønlandske forholdLund, Lars (København, 2007)[Flere oplysninger][Færre oplysninger]
Resume: Resource rents and models for taxation of these rents. Some references to the situation for Greenland. After a general introduction to the concept of rents the risk of distortion by double taxation of the normal capital income to investment is explained. Cash flow taxation or deduction in the tax base of investment times the risk free interest rate can be used to avoid this double taxation. Among other instruments to secure a part of rents for the public sector are direct participation and selling rights to exploit the resources by auction. The greater part of the paper is about taxation of rents in fisheries. The regulation is assumed to be based on professional advising and individual transferable quotas. Duties on the quota or a general cost increasing tariff, e. g. on fuel, are administratively simple models for taxation. Cost increasing indirect taxation has the good quality of incentive compatibility, as it supports the effort reducing aim of regulation. A concrete example illustrates a possible taxation of the prawn/shrimp fishery combining a duty on the quota with a tariff levied on the catch. Some comment are given on a recent report on the shrimp fishery (2005), and it is criticised for highlighting the theoretical qualities of Greenland’s fisheries policy, but neglecting the regulation and also to which extent incomes derived from quotas end up as income for Greenlandic households. URI: http://hdl.handle.net/10398/7559 Filer i denne post: 1
wp1-2007_rev.pdf (305.6Kb) -
Effects on Capacity Investments, Prices and WelfareBuehler, Stefan; Boom, Anette (København, 2006)[Flere oplysninger][Færre oplysninger]
Resume: We examine the effects of reorganizing electricity markets on capacity investments, retail prices and welfare when demand is uncertain. We study the following market configurations: (i) integrated monopoly, (ii) integrated duopoly with wholesale trade, and (iii) separated duopoly with wholesale trade. Assuming that wholesale prices can react to changes in retail prices (but not vice versa), we find that generators install sufficient capacity to serve retail demand in each market configuration, thus avoiding blackouts. Furthermore, aggregate capacity levels and retail prices are such that the separated (integrated) duopoly with wholesale trade performs best (worst) in terms of welfare. Keywords: Electricity, Investments, Generating Capacities, Vertical Integration, Monopoly and Competition. JEL-Classification: D42, D43, D44, L11, L12, L13 URI: http://hdl.handle.net/10398/7589 Filer i denne post: 1
wp11-2006.pdf (286.3Kb) -
Vertical Structure and the Risk of Rent ExtractionBoom, Anette; Buehler, Stefan (Frederiksbarg, 2014)[Flere oplysninger][Færre oplysninger]
Resume: We study the role of vertical structure in determining generating capacities and retail prices in the electricity industry. Allowing for uncertain demand, we compare three market configurations: (i) integrated monopoly, (ii) integrated duopoly with wholesale trade, and (iii) separated duopoly with wholesale trade. We find that equilibrium capacities and retail prices are such that welfare is highest (lowest) under separated (integrated) duopoly. The driving force behind this result is the risk of rent extraction faced by competing integrated generators on the wholesale market. Our analysis suggests that vertical structure plays an important role in determining generating capacities and retail prices. URI: http://hdl.handle.net/10398/9031 Filer i denne post: 1
boom.pdf (614.5Kb) -
Heterogeneity and Non-LinearitiesIversen, Jens; Malchow-Møller, Nikolaj; Sørensen, Anders (Frederiksberg, 2010)[Flere oplysninger][Færre oplysninger]
Resume: The returns to education in self-employment are addressed in four different specifications of the relationship between log income and years of schooling. The specifications range from a standard Mincer equation with a constant percentage increase in income to an additional year of schooling to the most flexible specification with dummy variables for the different number of years of schooling split into different types of education. Based on the more flexible specifications, important non-linearities and heterogeneity in the returns to education in self-employment are found. These results are robust across different estimation methods: OLS; Heckit correction models to handle sample selection; and IV to deal with the potential endogeneity of years of schooling. Moreover, the results are insensitive to the use of different sample years, different definitions of self-employment, and different income measures for the self-employed. URI: http://hdl.handle.net/10398/8225 Filer i denne post: 1
Sorensen_WP_2010.pdf (411.9Kb) -
Overgaard Olesen, Jan; Risager, Ole (København, 1999)[Flere oplysninger][Færre oplysninger]
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limits to competition policy harmonisation in EU enlargementMøllgård, Peter; Lorentzen, Jochen (København, 2001)[Flere oplysninger][Færre oplysninger]
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Recent developments and dependencies on prices/taxesla Cour, Lisbeth; Milhøj, Anders (København, 2005)[Flere oplysninger][Færre oplysninger]
Resume: In the following we will analyse the sale of alcohol in Denmark. Various figures related to this question are published by Statistics Denmark at different frequencies. Our main concern will be with quarterly data for the sale of beer, wine and spirits from the period 1990 – 2004. Our two hypotheses are: First we want to convince the reader that the total sale of alcohol in Denmark since 1980 has been fairly stable. By total sale we mean the total sale of 100% alcohol so the three categories – beer, wine and spirits are measured in litres of 100% alcohol equivalents. In order to convince the reader that the total sale of alcohol has been fairly constant we will present graphs and various indicators and tests of the degree of temporal dependence in this series. The overall impression from this analysis is that our first hypothesis seems to be supported – at least not contradicted – by the data. Next, we want to model the sale of beer and wine as shares of the total sale of alcohol. Even though the total sale can be considered fairly stable there have been divergent paths of evolvement for the sub-groups: the sale of beer has decreased over the period and the sale of wine has increased. The sale of spirits has been fairly stable. Modelling the system of the beer-share and the wine-share we want to split the total development into a part that can be ascribed to changes in the relative prices and a part that can be explained by changes in taste and drinking habits specified as a trend. By specifying a system conditionally on the prices of beer, wine and spirits and a trend we manage to estimate price sensitivity and taste sensitivity. A small forecasting exercise shows that the final model is fairly good at predicting changes in the shares due to price changes. Finally, the effects on the market shares of hypothetical changes in the taxation of alcohol are discussed. URI: http://hdl.handle.net/10398/7532 Filer i denne post: 1
wp18-2005.pdf (1.837Mb) -
Lund, Lars (København, 2005)[Flere oplysninger][Færre oplysninger]
Resume: The focus is effects of investments in airports and runways on the market for air travel and more in general for the production possibilities of the economy. In the case of Greenland two types of impacts can be sorted out. One is more efficient production of air transport due to increased density in the utilization of the net because of no use or less use of the airport in Kangerlussuaq. The other effect, connected to the first, is that resources are set free by avoidance of double work receiving the same passengers (and goods) in Kangerlussuaq and especially in Nuuk. Transformation curves are used to illustrate both effects and the first is dealt with also in an ordinary price quantity diagram. Using previous calculations and estimates done by the author two specific scenarios are treated in the theoretical framework presented: one is a lengthening of the runway in Nuuk to 1799 m and less intensive use of Kangerlussuaq, the other is the building of an airport south of Nuuk with a 3000 m runway in combination with abandoning Kangerlussuaq. Profitability and amortisation of the investments are reviewed in transformation curve diagrams. On the assumptions of the calculations both scenarios are profitable, but by far the most profitable is the big investment south of Nuuk. Concluding remarks stress the preliminary character of my calculations, but they also point out that decision makers’ choice of scenarios to be discussed and compared is unstable. URI: http://hdl.handle.net/10398/7500 Filer i denne post: 1
wp8-2005-1.pdf (155.3Kb) -
Marker-Larsen, Svend (København, 2004)[Flere oplysninger][Færre oplysninger]
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Schwenen, Sebastian (Frederiksberg, 2011)[Flere oplysninger][Færre oplysninger]
Resume: The regulatory approach to supply security in electricity markets has been substantially altered since power markets were partly privatized and reregulated in the mid 1990’s, when regulators chose to rely on market based prices and decentralized commercially based decisions on generation capacities. Prior to this market restructuring power systems basically worked as planned economies, however, the decentralization of production decisions introduced stochastic elements to electricity systems. Additionally, since the early 2000’s, power generating companies, often incentivized by the state, started increasing the share of renewable but intermittent energy sources in their generation portfolios. Due to its intermittency the production process of wind, solar and hydro power is difficult to plan and therefore the final amount of power that enters the market at each point in time becomes difficult to predict. As the level of power supply intermittency increases, so also do the number of challenges that market based approaches face in organizing secure power systems.... URI: http://hdl.handle.net/10398/8376 Filer i denne post: 1
Sebastian_Schwenen.pdf (781.2Kb) -
Hvad ved vi og hvad kan det bruges til?Bennedsen, Morten (København, 2004)[Flere oplysninger][Færre oplysninger]
Resume: I provide a short survey on recent research on the governance of closely held corporations. I focus on the strategic choice of ownership structure, the creation of family firms and the role of the board in the closely held corporation. Attention is payed to policyimplications of the research results. URI: http://hdl.handle.net/10398/7524 Filer i denne post: 1
wpec022004.pdf (179.2Kb) -
The relevant antitrust market for salmonHaldrup, Niels; Møllgaard, Peter; Kastberg Nielsen, Claus (København, 2005)[Flere oplysninger][Færre oplysninger]
Resume: Delineation of the relevant market forms a pivotal part of most antitrust cases. The standard approach is sequential. First the product market is delineated, then the geographical market is defined. Demand and supply substitution in both the product dimension and the geographical dimension will normally be stronger than substitution in either dimension. By ignoring this one might decide first to define products narrowly and then to define the geographical extent narrowly ignoring the possibility of a diagonal substitution. These reflections are important in the empirical delineation of product and geographical markets. Using a unique data set for prices of Norwegian and Scottish salmon, we propose a methodology for simultaneous market delineation and we demonstrate that compared to a sequential approach conclusions will be reversed. JEL: C3, K21, L41, Q22 Keywords: Relevant market, econometric delineation, salmon. URI: http://hdl.handle.net/10398/7633 Filer i denne post: 1
wp2-2005.pdf (268.6Kb) -
Nielsen, Søren Bo (København, 1998)[Flere oplysninger][Færre oplysninger]
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Lund, Lars (København, 2004)[Flere oplysninger][Færre oplysninger]
Resume: Processing ashore of raw materials from the fisheries tend intuitively to recommend itself because more creation of value added in this manner should take place in Greenland. However, we observe the opposite tendency: production is shifted aboard on factory trawlers and catches are shipped directly to export markets or may be so after transshipping in e.g. Nuuk. It is shown that this actual development indeed is the prediction of location economics. In the case of unemployment it may be optimal to secure raw materials for processing on plants ashore, an aim that may be achieved via subsidies. The optimality of such policy is discussed using concepts from cost benefit analysis, and it is demonstrated how the shadow price of labor has a crucial role. Shifting to the macro level capacity restrictions on plants and on the labor market are pointed out. The effect of taking raw material ashore is illustrated with a macro production function, which is assumed to have a positive marginal product until the capacity limit is hit. This, however, may take place after the noninflationary augmenting level of employment has been reached. Finally the possibility of alternative and better policies than the one relying on subsidies is touched upon. URI: http://hdl.handle.net/10398/7570 Filer i denne post: 1
wpec012004.pdf (323.5Kb) -
notat til udvalget om skat og internationaliseringBlomgren-Hansen, Niels (København, 2001)[Flere oplysninger][Færre oplysninger]
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A Disaggregate PerspectiveMalchow-Møller, Nikolaj; Skaksen, Jan Rose (København, 2003)[Flere oplysninger][Færre oplysninger]
Resume: Skill-Biased Technological Change in Denmark: A Disaggregate Perspective* In this paper, we provide an industry-level analysis of skill-biased technological change (SBTC) in Denmark over the last two decades. The analysis shows that SBTC has varied considerably across industries, and traditionally large Danish industries have experienced relatively less SBTC. This may partly explain why wage inequality between skilled and less skilled has risen less in Denmark than in other countries. We also find that SBTC has been concentrated in already skill-intensive industries. This contains important information about future labour requirements, as the relative importance of these industries must be expected to grow, thereby reinforcing the shift in demand for skilled labour. JEL Classification: J24, J31, L6 Keywords: skill-biased technological change, Danish industries URI: http://hdl.handle.net/10398/7549 Filer i denne post: 1
dp752.pdf (762.4Kb)