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Using the frequency-domain spillover index method, we investigate time-frequency spillovers and their underlying drivers among fossil energy, clean energy and metal markets. We find that short-term spillovers are stronger than long-term spillovers. Global clean energy markets are powerful spillover transmitters that can have strong impacts on fossil energy and metal markets. Rare earth metals are most vulnerable to spillover effects from clean energy and base metal markets, particularly in the long term. Different clean energy sources and metal markets have heterogeneous connectedness, e.g., the impact of wind energy on rare earth market is greater than that of solar energy. The short-term spillovers are mainly driven by policy changes, while the long-term spillovers are mainly affected by stock market uncertainty and economic fundamentals. Our findings have important implications for the construction of optimal diversification strategies and the design of policy incentives to promote clean energy investments across different time horizons. Keywords: Clean energy, Metals, Spillovers, Time-frequency, Spillover drivers, 1. INTRODUCTION Metals are an energy-consuming resource that require fossil energy for their extraction, production, smelting and recycling processes; therefore, fossil energy is an important input for the operation of [...]

One hundred years ago, Justice Holmes embraced the marketplace of ideas in his dissenting opinion in Abrams v. United States. (1) The same year as this centennial anniversary, Justice Kennedy, [...]

Almost 100 years ago, Ludwig von Mises and Friedrich Hayek argued that a socialist state could not determine marginal cost prices and therefore could not allocate resources rationally. Oskar Lange and Abba Lerner responded with the market socialist model. Subsequent scholars have refined the model (Leeman, Roemer). Views on market socialism for an entire economy are mixed (Phelps, S h lei fer and Vishny, Roemer). We briefly review the debate. We argue that a form of market socialism exists and is especially important in education, health care, and health insurance. In these sectors, prices are often set or restricted centrally, while many providers are state-owned, nonprofit, or mutual firms. We argue in favor of applying market socialist principles to health care and to health insurance policy. In particular, we show that these principles imply that community rating of health insurance is a source of major inefficiencies and harmful regulatory pressure. We suggest moving in the market socialist direction --toward marginal cost pricing and therefore away from community rating. The desire for universal or expanded coverage can be fulfilled by explicit, politically transparent subsidies paid to consumers who are both poor and high risk. Comparative Economic Studies (2017) 59, 405-427. doi: 10.1057/s41294-0170027-3; published online 9 June 2017 Keywords: health insurance, market socialism, quasi-markets, pricing, community rating, new public management, corporatization JEL Classification: 113, P51, P27, 118, D47, B24, D02, L31, INTRODUCTION The socialist calculation debate began almost 100 years ago when Ludwig von Mises and Friedrich Hayek argued that a socialist state could not determine marginal cost prices and therefore [...]

The U.S. recovery from the Great Recession has proceeded at a slow pace. Brady Lavender and Nicolas Parent (2012-13) show that the economy has been rebounding more slowly than from [...]

We study tacit collusion in price-setting duopoly games with strategic complements and substitutes. While this problem has been considered by several studies, this article sheds new light on the comparison by focusing on the relationship between dynamic stability of equilibrium and tacit collusion. We find when controlling for the absolute slope of the reaction functions, there are no robust differences in either the convergence properties or tacit collusion between complements and substitutes treatments. JEL Classification: D43, LI3, L40, 1. Introduction This article concerns the determinants of tacit collusion in duopoly markets. While factors such as group size and communication are well-known ingredients for cooperation, a growing body of [...]

Over the last thirty years in Australia and elsewhere, there has been a substantial marketisation of human services (1) funded by government. A major justification used for this process has [...]

The hegemony of neoliberalism has seen the market virtually canonised and mainstream neoclassical economics successfully shaping an understanding of the market as being synonymous with the economy and capitalism more [...]

One of the most basic lessons any student of mainstream economics learns is that markets allocate scarce goods and services efficiently on the basis of price. More critical political economy [...]

Small business activity in Australia is perennially dogged by market structures operating to the benefit of larger corporations. Unfortunately, the small business-corporate interaction is little understood because it is little [...]

There is a story that has been told by both the physicist Stephen Hawking and the anthropologist Clifford Geertz. They report that a famous scientist was lecturing on the structure [...]

Cass Sunstein details intrinsic flaws in group discussion, even in ideal deliberation, and draws attention to prediction markets and information-aggregation devices on the internet as supplements to discussion. I respond that the supposed flaws do not affect ideal deliberation, and that the evaluation of group discussion is too pessimistic: there are alternative hypotheses to account for his findings, and there are doubts about their external validity. Also, I contend that his evaluation of prediction markets and internet devices is too optimistic. The markets have failed miserably, and the internet is vulnerable to astroturfing by the powerful and wealthy. Keywords: discussion; deliberation; prediction markets; information aggregation; power., Introduction The deliberative approach reigns in democratic theory. Yet, the institutional recommendations of deliberative democracy do not go far beyond the injunction to increase group discussion, in its sites, in [...]

Charles Smith in the Market It is with great pleasure that I take this opportunity to write a short comment based on Charles Smith's article, 'Markets as Definitional Practices' (2007). [...]

Markets are an efficient way of producing and distributing a very large number of mundane items. Market incentives are a dependable way of getting our bread baked. Markets allow us [...]

Repugnance and its consequences in market transactions are discussed. The selling of tissue, lending money for interest, slavery, gambling, adoption and other examples of markets wherein repugnance has been established as a constraint on the market are presented.

The definition of markets should be de-emphasized in horizontal merges and exclusionary practices of tying and bundling agreements. Antitrust laws should be adjusted to facilitate balance between innovation and hindering intellectual property. The impact of antitrust laws on market competition is analyzed.

The effects of the organization of an asset market on liquidity are studied using a model of financial intermediation. Findings reveal that a reform that lowers the market power of the dealers may result to reduced trading costs, dealers' net entry, and an increased trade volume. The model also indicates that markets of similar structures may post different liquidity results.

The purpose of this article is to analyze the relation between scientific knowledge in the form of theories and the world that such theories are about. The focus is on market theories. I argue that everyday knowledge, conceptualized using the notion of 'lifeworld,' is the bedrock of scientific knowledge. I also make two distinctions, one between types of markets and one between principles of order in markets. There are two different types of markets, fixed-role markets and switch-role markets, and no existing theory can be used to explain both of them. In fixed-role markets, such as a producer market of garments, actors are identified as either sellers or buyers. In switch-role markets, such as the stock exchange market or currency market, actors are not identified with one role. The other distinction is between standard and status markets. In a status market, order is maintained because the identities of actors on both sides of the market are ranked according to status, which is a more entrenched social construction than the commodity traded in the market. In a market characterized by standards, the situation is reversed: the commodity is a more entrenched social construction than the social status of actors in the market. These distinctions are the backdrop of my analysis of the idea that markets are performed. It is concluded that the performativity approach is useful today for analyzing switch-role markets. A further conclusion is that neoclassical economic theory can be used in understanding switch-role markets, but not fixed-role markets.

The degree of market integration across individual country equity indices using modern cointegration techniques is analyzed.

I study pricing and commitment by platforms in two-sided markets with the following characteristics: (i) platforms are essential bottleneck inputs for buyers and sellers transacting with each other; (ii) sellers [...]

Models of Keynesian economics, which examine transition economy to be successful, are presented.

We utilize a randommatching model to examine the relationships between market frictions and international trade. In our setting, an individual may choose to search abroad where she may have a cost advantage, but is less likely to meet potential trading partners, owing to higher market frictions. Interestingly, we find that international trade may be associated with lower welfare than autarky. We show how this is due to price distortions resulting from bargaining when there are opportunities for exchange across countries.

The impact of market structure on beer supply, in Germany and the United States, is examined.

Building on the observation that competitive dynamics and market evolution are inextricably linked and underresearched, we propose a road map to guide and stimulate future research in the area. A [...]

A framework in which establishing and managing a regulatory institution calls for an unchanging cost is advanced and the different facets of this model are analyzed. It is shown that, in the model, supply of regulation is limited by the extent of the market.

The performance of markets during famines is a contentious issue, however, research tends to associate famine with market segmentation and hoarding. The analysis of the spatial and temporal patterns of food-price movements during four famines in pre-industrial Europe indicates that markets functioned normally in times of crisis.

A study is conducted to design a socially optimal market structure to control excessive entry of firms in to product market, which effects the social cost of public funds.

A theoretical framework that helps to deal with markets without suspending their calculative properties is presented .

In this paper, we report on an equilibrium with market dominance that exists in a simple two-firm model that features neither entry barriers nor sophisticated punishment strategies. This equilibrium induces an intertemporal market division in which the two firms alternate as monopolists--despite the fact that the model also sustains a Cournot duopoly. Even when initially both firms are active in the market, the alternating monopoly reveals itself rather quickly. Moreover, it Pareto dominates the Cournot equilibrium--as it is close to the cartel outcome. Several examples of what well may be such alternating monopolies are presented. JEL classification: C73; D43; L13 Keywords: Dynamic competition; Oligopolistic competition; Stochastic games; Monopoly.

The significance of Internet for economists to understand the operations of markets is examined.

This paper presents an experiment to investigate the impact of information externalities in a search model. The model implies that information spillovers create an initial delay in action by agents, followed by a flurry of activity once some public information is revealed. Conversely, this experiment reveals a shorter delay prior to the first subject moving than the model suggests. Furthermore, the subsequent increase in activity is greater than predicted. However, as the sessions progress, the subjects exhibit a degree of learning in each treatment. They prolong their search for higher payouts and, hence, their behaviour approaches that of the model's optimal strategy.

There is a well identified empirical connection between the intensity of competition in product markets and better productivity performance (OECD, 2002a). In general, economy-wide competitive pressures appear to be relatively [...]

Behavioral economics is examined in the context of the decentralized, private ownership market economy. The role of viability mechanisms that indirectly and adaptively coordinate producers and consumers out of equilibrium is examined.

The home market effect and bilateral trade patternsIndustry characteristics like transportation costs and differentiated products and their impact on home market are analyzed using monopolistic competition model in large countries.

The economic tools are used to understand psychological phenomenon of cognitive errors in market. The impact of mistaken beliefs on errors in market is analyzed.

The role of microeconomic complementarities in economies with production externalities and demand spillovers is discussed. The transparency of public information in reducing common uncertainty in market place is emphasized.

Research shows that analytical capabilities and market information processing practices improve for organizations demonstrating more favorable learning values. This in turn affects market-based outcomes. These findings are discussed within the framework of current literature and future research.

This paper outlines the fundamental features of the PJM day-ahead energy market and real-time energy market. The Day-ahead market is based on a voluntary least-cost security constrained unit commitment and dispatch with several fundamental design features that ensure the market is robust and competitive. This market offers market participants the option to lock in energy and transportation charges at binding day-ahead prices. The flexibility of the day-ahead market rules provide all participants with equal access to the day-ahead market through consistent price signals and by providing all participants with the ability to submit virtual demand bids and virtual supply offers. These mechanisms promote liquidity in the markets. Economic incentives drive the convergence of the day-ahead and real-time market prices. The real-time energy market is based on security-constrained economic dispatch and is cleared based on the actual system operating conditions. The LMP-based markets support reliable grid operations through efficient price signals. Index Terms--Electricity market, locational marginal pricing.

The electricity industry of the Nordic countries went through a major restructuring during the 1990s. A wholesale market with significant competition has been established. Nord Pool was established in 1993 as a Norwegian electricity exchange, and extended its trade to Norway and Sweden in 1996. It thus became the world's first multinational exchange for trade in electric power contracts, and presently it is the only truly international electricity market. There is one market operator, and there are five system operators. Each country has its own regulatory agency. There are no general cross border tariffs. In 2001, power contracts worth nearly NOK 412 billion, about 55 billion Euro, were cleared by Nord Pool, and the combined volume of contracts traded was 2769 TWh, that is more than seven times the physical consumption. An open market with a common framework has made the Nordic market the most liquid electricity market in the world. Three of the countries have full retail market access. Since deregulation of the electricity industry started, restructuring has taken place in all countries resulting in mergers and acquisitions. There is an ongoing concentration of ownership in the wholesale market, and the concentration of the production side causes concern. Index Terms--Deregulation, electricity markets, power exchange.

The New Electricity Trading Arrangements (NETA) in England and Wales are just over one year old and are generally acknowledged to have successfully enabled competitive pressures to emerge fully in the generation market for the first time since the electricity industry was liberalised in 1990. With their emphasis on treating electricity as far as possible like any other tradable commodity and their lack of a centralized clearing market, they represent a radical departure from conventional wholesale trading arrangements. This article explains the principles underlying NETA and examines how the arrangements have fared over their first year. Index Terms--Competition policy, Energy market restructuring, Energy markets, Energy trading and risk management.

This tutorial paper discusses some aspects of electricity markets from the perspective of the demand-side. It argues that increasing the short-run price elasticity of the demand for electrical energy would improve the operation of these markets. It shows, however, that enhancing this elasticity is not an easy task. The tools that consumers and retailers of electrical energy need to participate more actively and effectively in electricity markets are discussed. The paper also describes how consumers of electricity can take part in the provision of power system security. Index Terms--Contracts, load management, load modeling, load shedding, power demand, power industry, power system economics, power system security.

We compare first-price auctions to an exchange process that we term 'multilateral negotiations.' In multilateral negotiations, a buyer solicits price offers for a homogeneous product from sellers with privately known [...]