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Against the background of the ecological civilization system reform in the new era, the appropriate allocation of water pollutant discharge permits is an important policy for controlling the amount of wastewater discharge. Traditional allocation methods have disadvantages, such as high additional costs, an unfair allocation scheme, and market distortion. In the present study, a fixed-cost allocation model based on data envelopment analysis (DEA) and the Nash non-cooperative game theory is employed to allocate water pollutant discharge permits of totally 31 provinces in China from 2008 to 2017. The allocation scheme considers environmental efficiency. The results demonstrate regional differences in the allocation of water pollutant discharge permits. The eastern region has abundant allocations. The northeastern and central regions have insufficient allocations. Besides, the western region has a significant shortage of allocations. It indicates the higher the utilization efficiency of the water pollutant discharge permits, the higher the region's sustainable development is. Based on the analysis, we propose guidelines for industrial wastewater discharge reduction.

Using data from Chile, we find that more restrictive standards are associated with a reallocation of domestic sales from small to large firms, which has allocative efficiency implications. Guided by this evidence, we study the welfare effects of the reallocation brought about by stricter standards in a model with monopolistically competitive, heterogeneous firms, and a general demand system. Restrictive standards have an ambiguous effect on welfare. On the one hand, they improve allocative efficiency because low-quality firms over-produce in the market allocation. This market distortion is driven entirely by the presence of variable markups and exists to varying degrees in both homothetic and non-homothetic frameworks. On the other hand, the imposition of stricter standards forces firms to pay a fixed cost that is welfare reducing. We estimate our model for Chile and find significant heterogeneity in the welfare gains from moving to the optimal standards policy across industries.

Renewable Portfolio Standards (RPS), as the strategic requirement effectively fits the top-level institution design of China's low-carbon energy transition, will help to promote China's energy structure optimization and power market reform. The success of its implementation depends on the scientific quasi-parameters design of the system. At present, China's tradeable green certificate (TGC) market is still in the voluntary trading stage. There are differences in natural attributes and transaction prices, resulting in the market segmentation and market distortion of the TGC market. Considering the non-neutral technology, this paper uses system dynamics to construct a long-term trading model under China's RPS, and analyzes the impact of relevant system quasi-parameters on the market trading process. The results show that:(1) The scientific quasi-parameters design of the RPS, such as technical conversion coefficient, TGC valid period, TGC benchmark price and RPS quota, will encourage and guide manufacturers to conduct TGC transactions, which will promote the development of renewable energy. (2) The introduction of the technical conversion coefficient can effectively promote TGC transactions, improve China's social welfare and optimize the power source structure. Therefore, the scientific design of the relevant quasi-parameters and strengthening of the supervision mechanism are conducive to implementing the RPS effectively in China.

Moving assets out of vulnerable areas, known as “retreat,” is a necessary but unpopular option when coastal hazards impact land. Most people prefer protection options. Governments and private land owners tend to adopt a “wait-and-see” approach for retreat. This may be because the time for retreat seems some way off, or because protection has not yet been ruled out, or to avoid unwelcome news. This policy void has allowed people to assume that government will offer to “buyout” property on generous terms after coastal hazards inevitably force the owner to relocate. The problem with that assumption is that (a) it is unaffordable as a solution for all at-risk properties and (b) it acts as an incentive to intensify development in locations vulnerable to coastal hazards. It is, in effect, a form of market distortion which promotes maladaptive behavior. We therefore need to retire that assumption by articulating a standard default arrangement for retreat. This essay suggests that government should establ...

Some 30 years ago Gordon Tullock, in his capacity as Editor of Public Choice, made a pointed effort to motivate researchers to measure and quantify resource investments in rent-seeking activities. Despite Tullock’s identification of this aspect of rent-seeking as a significant gap in the literature and call to arms, this remains an under-studied topic of importance. Why is this? In our opinion, the answer is that, for a variety of reasons, measuring rent-seeking turns out to be very difficult. In this paper we identify and discuss several of the difficulties, both theoretical and empirical, although we concede that our treatment surely is not exhaustive.

Purpose Some recent empirical studies have found that developing countries are more prone to external terms-of-trade shocks compared to developed nations. With this background, the purpose of this paper is to the question of whether developing countries possess any built-in mechanism that can cope with external terms-of-trade (TOT) shocks both theoretically and empirically. Design/methodology/approach This paper uses a two-sector, full-employment general equilibrium model with endogenous labour market distortion to conduct its theoretical analysis and then uses an annual panel dataset of 13 small developing countries over the recent time period of 2000-2012 to substantiate its theoretical findings. Findings Theoretically, this study finds that developing countries possess an inherent shock-absorbing mechanism that stems from their peculiar institutional characteristics and can lessen the gravity of detrimental welfare consequence of exogenous TOT movements. This analytical result has been found to be empirically valid based on a panel dataset of 13 countries from 2000-2012. Originality/value The authors’ analyses suggest that that the developing countries should take utmost caution before adopting the policy of labour market reform because these might impair the effectiveness of their in-built shock-absorbing mechanism against adverse international price movements.

Member States have published National Energy and Climate Plans with challenging variable renewable electricity (VRE) targets. As VRE has a high peak to average output, the Single Electricity Market of the island of Ireland (SEM) will need to consider how best to balance the lost value of curtailment against the extra costs of higher Simultaneous Non-Synchronous Penetration (SNSP), more interconnector capacity and/or more storage. The paper develops a spreadsheet model to explore these options for the 2026 VRE targets in the SEM and her neighbours. Raising SNSP from 75 % to 85 % reduces curtailment from 13.3 % to 8.0 %, saving 1338 GWh/yr of spilled wind. Adding the Celtic Link of 700 MW at SNSP of 75 % reduces curtailment to 12.4 % and saves 235 GWh. Adding 100 MW of batteries saves 19 GWh/yr, but the costs of delivering these savings are high. The marginal spilled wind can be four times the average, creating a potentially significant market distortion and reducing the value of adding further VRE.

By considering the term-of-trade and volume-of-trade effects, Jones (2012) examines the distributive effect in a competitive economy with non-traded goods. This paper reexamines the effect in an imperfectively competitive economy with firm dynamics. A rise in foreign demand can generate revenue and also mitigate market distortion, whereas skilled-unskilled wage inequality can be magnified or mitigated via the effect on firm entry or exit. Thus, how to achieve the trade-off among growth, inequality and the environment becomes an important task for government decision-makers, especially so during the pandemic of Covid-19.

Throughout decades, conflicts related to the access and usage of various energy sources have caused political tensions between nations and confederations of states. Thus, partially to decrease the dependence on fossil fuels, a thorough transition towards renewable energies has been promoted by several regional and national governments as well as by multinational institutions such as the European Union. In this context, the automotive industry has particularly been held responsible for the production of negative externalities, such as global greenhouse gas emissions (GHG emissions), noise and air pollution. To a notable extent, these externalities were caused by vehicles running on fossil fuels such as petroleum products, including gasoline, diesel fuel and fuel oil. Accordingly, it is often argued that replacing vehicles run by internal combustion engines (ICEs) with so-called alternative fuel vehicles (AFVs), particularly with plug-in electric vehicles (PEVs), is crucial to increase the sustainability of the transport sector. Moreover, several EU-member states aim to reduce the vehicle-related petrol and diesel demand to decrease their dependence on foreign energy sources. However, one must consider that there are important economic costs related to such a transition process. This paper evaluates the short-term and long-term effects of fiscal policies on the European automotive market in the period from 2010 to 2018, focusing on the impact of mentioned public incentives for AFVs. This public interventionism will be critically evaluated to examine the effectiveness of government incentives in promoting AFVs, particularly for plug-in electric vehicles (PEVs). The author argues that the rather positive sales evolution of AFVs was not caused by corresponding actual customer demand but mainly by governmental policies in an increasingly interventionist market. He acknowledges that the growing variety of available PEV models, the increasing driving range of electric vehicles, as well as their decreasing production costs due to economies of scale, have helped PEVs to become more competitive. However, the concern should be raised that mentioned public interventionism is unsustainable from a macroeconomic perspective, possibly leading to significant market distortion and a new artificial market bubble. The narrowed focus on battery electric vehicles prevents the market from further elaborating on other potentially more sustainable technologies. Moreover, from a geostrategic perspective, the transition of the European automotive industry towards electrification is likely to reduce the EU’s dependency on imported fossil fuels but enables several non-European automotive brands to conquer a significant market with their new competitive plug-in electric vehicle technologies.

This study investigates the potential role of the reference rate in an interbank market where individual banks cannot fully identify the nature of underlying shocks affecting their interbank transactions. We find that the reference rate does not always mitigate the market distortion arising from imperfect information. When the number of sample transactions is smaller than a certain threshold, the reference rate magnifies the distortion even if the reference rate is not affected by any reporting noise. The threshold depends on the relative size of aggregate and idiosyncratic shocks. Noise in the reported interest rates, which is potentially increased by banks' manipulations, distorts individual banks' inferences about the underlying shocks, and thereby raises the threshold. When noise is highly correlated among multiple sample transactions, perhaps owing to collusive manipulations, it is possible that increasing the number of sample transactions may never mitigate the market distortion.

Using the MLS and the land registration data from Indiana, this paper identifies and explains price distortions associated with out-of-state sellers and buyers in the housing market. We find that out-of-state buyers pay 20.4% higher prices than local buyers, and the premium is fully explained by the former purchasing larger homes than the latter. On the other hand, out-of-state sellers receive a 21.2% price discount, among which 9.3% is attributable to differences in transactional characteristics, 3.2% is explained by increased motivation and weak bargaining power of out-of-state sellers, and 1.5% is due to differences in agent characteristics and behaviours. The remaining 7.2% discount varies systematically with the informational disadvantage of out-of-state sellers, and with the market condition. Our results are robust to model misspecification.

In practice, a market does not comprise only one type of firm, resulting in two distortions: negative externalities caused by pollution damage and pricing power enjoyed by dominant firms. This paper examines choice of environmental policy instruments (tax-centered, quota-centered, and mixed policy) in markets where multiple dominant firms are price makers and multiple fringe firms are price takers. Environmental policy is not necessarily applied to all firms or facilities. This study focuses on the situation where only dominant firms are objects of environmental policy because this situation best reflects actual policy instruments. Understanding whether abatement costs exceed the environmental damage is essential to determining the best policy. The major finding of the study is that deadweight loss is reduced if dominant firms adopt eco-friendly technology and the regulator increases the ratio of taxed dominant firms to all dominant firms. Additionally, mixed policy is efficient when market distortion as a result of pricing power decreases.

The case describes the competitive advantages that U.S. farmers enjoy in the global cotton industry and the subsidies they receive from the U.S. federal government. Arguments for and against the subsidies are presented in the context of global competition. The case includes the data needed to estimate a supply curve for 2004 cotton production and predict the average 2004 cotton price using total cotton consumption for 2004. Students can also estimate the result of eliminating the U.S. cotton subsidies on the average 2004 cotton price.Students have the opportunity to learn about the history and structure of U.S. cotton subsidies as well as their impact on global cotton prices. Students also are able to practice building and interpreting an industry supply curve.

When Adam Smith gave us the theory of the perfect market in 1776 he gave us a model with two embedded distortions, one social and one environmental, because he assumed that economic activity works under social and environmental externality neutrality or it had minimal social and environmental impacts making them external factors to the economic model. In 1987 the Bruntland Commission said in “Our Common Future” that evidence existed indicating that social and environmental impacts are relevant and needed to be incorporated or included in our development models. In essence, the Bruntland Commission called for the fixing of Adam Smith’s tradit ional market model. From 1987 to 2012 a process of testing different sustainable development models took place and in 2012 Rio +20 it was decided that development now was going green market, green growth and green economy through a win-win partnership environment and the economy to make the economy an environmentally friendly entity. To correct the environmental distortion embedded in Adam Smith’s model the only thing that needed to be done was to internalize the cost of being environmentally friendly in the pricing mechanism of traditional markets to shift them to green markets, green producers and green consumers, but instead they went the way of environmental externality management (e.g. carbon pricing) as they took the environmental distortion embedded in Adam Smith’s model as an environmental externality led market failure. Hence, instead of correcting Adam Smith’s model to eliminate the environmental distortion by reflecting environmental costs in the pricing mechanism and making that way environmental issues endogenous issues as they should have been from the beginning had Adam Smith proposed green markets instead of the traditional market they are treating an embedding distortion in Adam Smith’s model that before was irrelevant, but now it is relevant, as an environmental externality led market failure. And this raises the question: Is environmental externality management a correction of Adam Smith’s model to make it environmentally friendly and shift it to green markets or is it a distortion on top of another distortion? Among the goals of this paper are: a) to show analytically and graphically that the proper correction of Adam Smith’s model to eliminate the embedded environmental distortion in it and shift it to green markets is environmental cost internalization; and b) to point out analytically and graphically that environmental externality management is a distortion on top of an embedded environmental distortion in Adam Smith’s model; and therefore it is unconnected to perfect green market thinking.

This theoretical paper shows that developing countries possess an inherent shock-absorbing mechanism that stems from their peculiar institutional characteristics and can lessen the gravity of detrimental welfare consequence of international terms-of-trade disturbances in terms of a static two-sector, full-employment general equilibrium model with endogenous labour market distortion. The supply of foreign capital in the economy is a positive function of the return to capital. Subsequently, it has been verbally explained why the main result of the full-employment model would remain valid even in a two-sector specific-factor Harris-Todaro type model with urban unemployment. The analysis leads to a couple of important policies that should be adhered to preserve this in-built system. Finally, it offers three important statistically testable hypotheses which would pave the way for future empirical research in this area.

Credit default swaps (“CDS”) are, once again, making waves. Maligned for their role in the 2008 financial crisis and condemned by the Vatican, investors are once more utilizing CDS to achieve results of questionable market benefit. A CDS is a financial contract that allows investors to “bet” on whether a borrower will default on its loan. However, rather than waiting to see how their bets pan out, some CDS investors are collaborating with financially distressed borrowers to guarantee the profitability of their CDS positions—“engineering” the CDS’ outcome. Under the CDS contract, these collaborations are not prohibited, yet they have roiled the CDS market, leading some market participants to view the collaborations as a sign that CDS are little more than a rigged game. On the other hand, some view “engineered CDS transactions” as an innovative form of financing for distressed companies. As engineered CDS transactions proliferate in the market, it becomes increasingly prudent to look beyond their contractual acceptability to assess whether, from a legal point of view, these transactions are permissible. Engineered CDS transactions demonstrate the challenges that the existing legal and non-legal framework face in effectively responding to new forms of market distortion. This Article examines the costs and benefits of engineered CDS transactions on the market as a precursor to determining whether legal intervention is needed. Assessment of the relative costs and benefits of engineered transactions indicates that despite their innovativeness, engineered CDS transactions are largely detrimental to the markets because they impose costs on actors unaffiliated with the CDS market and, more broadly, destroy public trust in the financial markets. Yet, despite their associated harms, this Article demonstrates that, legally, engineered transactions exist in a gray space. This Article analyzes the phenomenon of engineered CDS transactions, assessing the capacity of applicable legal frameworks, private standards, and market discipline, to address these transactions and finds each to be lacking. Thus, this Article proposes a range of responses, including modernization of the existing anti-manipulation framework, to mitigate against the harm and collateral consequences that stem from engineered CDS transactions.

Using a recently implemented Price Deficiency Payments (PDP) policy in India known as the Bhavantar Bhugtan Yojana (BBY), we examine how such farm support policies affect farm-gate prices and quantity arrivals. We study two major crops covered under the scheme, Urad (Black-gram) and Soyabean. We find that Urad prices fell by 4 percent, and quantity arrivals increased by 42 percent during the BBY period. In contrast, we find no significant effect on Soyabean. We argue that the size of deficiency payments can explain this difference in market outcomes. Using bid-level crop auction data, we rule out collusion among intermediaries as a potential explanation for our results. Finally, we estimate the monetary losses incurred by the farmers and the government due to this policy.

An important context for contemporary trade frictions is the emergence, since the 1990s, of a wide range of new forms of market capitalism, of which China’s hybrid market economy is the most significant. Institutional diversity of this kind is a source of strength and dynamism for the global trading system, but it is also the cause of very serious friction. The General Agreement on Tariffs and Trade/World Trade Organization system has dealt with this problem before, but the existing settlement regarding the legitimate boundaries of institutional diversity is under pressure and needs to be revisited. One concept that has been incorporated into World Trade Organization trade defence law (and elsewhere) to help draw these boundaries is the concept of the ‘market distortion’. The concept can be a useful one, but it has so far been interpreted and applied with an inadequate appreciation of its serious conceptual and practical difficulties. The potential result is a system of trade defences targeted in a discriminatory and even punitive manner against heterodox institutional forms, in ways that may excessively disincentivize institutional experimentation. In response, this paper argues for an approach to the interpretation and application of this concept, which proceeds from an understanding of the institutionally embedded character of markets. This does not take the form of a readily available ‘solution’, but rather a messy and evolving set of legal techniques that, in the best case, can form the legal basis of a practical and justifiable approach to the tensions caused by institutional diversity. A toolkit of legal techniques of this kind clearly cannot take the place of a more foundational political settlement of some sort, but it is a necessary accompaniment to it, if we are to preserve the aspiration towards a genuinely non-discriminatory and rules-based global economic order.

This study examines information flow between new and old forks after Bitcoin splits. Particularly, we estimate the transfer entropy between Bitcoin and Bitcoin Cash as an information-theoretic approach. When a symbolic analysis is applied, asymmetric information flow from Bitcoin to Bitcoin Cash is observed. We further provide evidence that this relationship is due to the role of liquidity in price leadership. Our findings suggest that (i) investors could forecast the fluctuation of price evolution in the Bitcoin Cash using the rise–fall pattern of Bitcoin price and (ii) policymakers (regulators) must closely monitor the information flow between the two markets, in a state with strong market integration, to prevent market distortion and regulatory arbitrage.

This article examines workfare schemes in rural Hungary and their contribution to relieving rural poverty. It does so on the basis of an analysis of European Union statistics and a series of semi-structured interviews which were conducted in 2013-2015 as part of a larger project investigating the contemporary state of rural Hungary. The paper comprises four sections: following a short description of the methodology, regional disparities and deprivation in rural areas are introduced with the help of a typology on deprivation and Eurostat data, thus providing evidence for European comparison. Following this, the main findings of our extensive qualitative research into workfare policies in rural Hungary are introduced and discussed on the basis of related legislation4. The article finds that workfare schemes in the rural sector are unique to Central and Eastern Europe, and are especially favoured in Hungary; it also discovers that economists are correct in assessing that said workfare schemes create few new jobs. Nevertheless, they are ‘better than nothing’, and have become embedded in rural society, where they are appreciated by beneficiaries and local officials alike. They necessarily make a paternalistic distinction between the deserving and undeserving poor, and the more commercially-oriented schemes raise issues of market distortion.

We study how the presence of state-owned enterprises (SOEs) distorts private firms' decision on interprovincial sales in China. Using data from World Bank Investment Climate Survey and Annual Survey of Manufacturing Firms in China, we find evidence that the prevalence of SOEs in a city-industry where private firms reside will affect these firms' decision on the allocation of sales between interprovincial markets versus adjacent market. The direction of the effect on private firms, however, depends crucially on the private firms' access to credit. Specifically, the prevalence of SOEs leads to a higher propensity to sell to remote markets for firms with adequate financial access, whereas the opposite is true for firms who are credit constrained. We build a parsimonious model which links political/market distortion, market access, and credit constraint to explain these patterns, and argue that remote markets can serve as shelters for local distortions resulted from SOEs presence for some private firms.

Public policies such as feed-in tariffs have been widely introduced to stimulate the development of renewable energies, and sustain a decarbonisation of the electricity sector. Proponents argue that these governance instruments safeguard public goods such as the climate – yet they are accused of creating political markets, and political prices, here understood as market distortion. This paper studies the ‘politics’ of pricing by following the adoption of the first feed-in tariff in France. Pricing as a way of achieving non-economic ends, such as climate mitigation, brings the values of several public goods into play, all the while prompting a translation of these values into a single price. Following the struggles over the pricing of wind power in the early 2000s, the study illustrates that rather than a pollution of the market sphere by that of politics, a politics of pricing can be observed in four distinct struggles: namely the framing of the public interest; valuation as the articulation of the future; the possible agencies of governance; and role of valuation methods and calculations.

This article confirms that China’s economic sanction in the form of restricting salmon imports from Norway was in retaliation for the 2010 Nobel Peace Prize awarded to a Chinese dissident. By combining personal accounts of stakeholders interviewed in the Norway–China salmon trade with an examination of trade data, there is strong evidence that links changes in trade patterns of fresh/chilled whole Norwegian salmon to border measures applied in response to the peace prize. While disproportionate border measures targeting Norwegian salmon have distorted China’s market since 2011, private actors appear to have busted the sanction by circumventing these measures, including rerouting, falsifying country-of-origin certification, and smuggling. This could have long-term consequences for trade patterns and quality. Official statistics record a reduced Norwegian market share and decreased Norway–China salmon trade despite an expansion of the volume of Chinese imports. However, official data do not record Norwegian salmon entering illegally, which some stakeholders estimate at between 50 and 70 per cent of the market. Norway’s official refusal to meet the Dalai Lama in May 2014 suggests that China’s sanction has affected foreign policy. The salmon sanction demonstrates that China has become more assertive in its international relations.

In developing economies like India, ‘informal’ sector occupies a large portion of GDP and employment. In the wake of slowdown in investments across countries and ensuing fall in the GDP growth rates, the question that arises is the following. If an economy suffers from growth slowdown, and since investment is often believed to be a driver of growth, should more investments go to the formal sector or to the informal sector? In what ways outcomes are different in terms of composition of output, employment, and wages? The issue may be a particular interest to India where slowdown in investments is believed to be the primary reason behind the recent sluggish growth of the economy. This paper theoretically evaluates the effects of investments on sectoral wage rates, output and employment composition, and growth in a developing economy consisting of a vast informal sector in a general equilibrium framework with endogenous demand and sector specific capital. The model traces, beginning with capital market disequilibrium and labour market distortion, whether investments into the sectors lead to equilibrium in capital and labour markets over time. This approach is distinctly different from the existing literature that is primarily engaged with finding out comparative statics results of a change in policy variables such as tariff rate and subsidy/tax. This paper also brings in endogenous demand that is mostly missing thus far. The model highlights the following results. Investments in the formal sector increase the size of the sector and cause the informal sector to shrink. The labour market distortion goes away as wages are eventually equalized across the sectors, after which the capital market equilibrium is achieved. Equalisation of wages is similar to the ‘turning point’ of the Lewis model of development. On the other hand, investments in the informal sector increase its own size but do not alter the size of the formal sector. Much contrary to the previous case, capital market equilibrium is achieved first, so the labour market distortion stays, leading to the existence of a persistent wage gap in the long run. One way of avoiding the possibility of the informal sector becoming large in size would be to subsidize the short-run capital return in the formal sector. This of course is a ‘second-best’ policy to counteracting the distortion in the labour market.

This paper analyzes the role of allocative efficiency of energy resources with respect to total factor productivity (TFP) in the Korean manufacturing sector. Using firm-level data for Korea, we extend the framework of Hsieh and Klenow (2009) to measure allocative inefficiency of energy markets as a function of energy price distortions. Our results indicate that between the years 2000 and 2014, intra-industry misallocation has increased. With respect to energy resources, this is truer in the low-oil-price periods than in other periods. An improvement in allocative efficiency could be attained by equalizing total factor revenue productivity across firms within an industry. In reallocating capital, labor, and energy resources, hypothetical TFP increases of 51.3 % and 71.7 % above actual levels in 2000 and 2014, respectively, could have been achieved. The evolution of firm productivity has been shaped by energy (electricity and fuel) market distortion and capital market distortion. Our evidence suggests that government (energy) price intervention is likely to have played an important role in productivity loss and in allocative inefficiency observed in energy markets.

This study aims to determine whether or not there are transactions that contain elements of tadlis and tagririr in the e-marketplace. This study uses primary data obtained from e-marketplace consumers in Surabaya which are classified as the age generation Z category. This study uses a descriptive quantitative approach with survey methods and questionnaires. The results of this study found that there are transactions in the e-marketplace that contain elements of tadlis and taghrir. Transactions with the tadlis element get a high response while transactions with the taghrir element get a lower response.Keywords: Market Distortion, Tadlis, Taghrir, E-MarketplaceREFFERENCE Afzalurrahman. (1996). Doktrin ekonomi Islam. Yogyakarta: Dana Bhakti Wakaf.Al Arif, M. Nur Rianto dan Euis Amalia. (2010). Teori mikroekonomi: Suatu perbandingan ekonomi islam dan ekonomi konvensional. Jakarta: Kencana.Angga, K. P. et al. (2017). Rancang bangun aplikasi marketplace penyedia jasa les private di kota Pontianak berbasis web. Jurnal Sistem dan Teknologi Informasi, 2 (5), 1-5. Codrington, G. & Grant-Marshall, S., Penguin. (2004). Mind the gap. South Africa: Penguin.David. (2014). E-Marketplace Sebagai Penyedia Layanan Penjualan Barang. Konferensi Nasional Sistem Informasi 2018, 159-164.Dewa, B. P. & Setyohadi, D. B. (2017). Analisis dampak faktor customer relationship management dalam melihat tingkat kepuasan dan loyalitas pada pelanggan marketplace di Indonesia, TELEMATIKA, 14(1), 33 – 38.Fauzi, Ahmad Sofwan. (2017). Transaksi jual-beli terlarang; ghisy atau tadlis kualitas. MIZAN: Journal of Islamic Law, 1(2), 143-154.Farki, A., Baihaqi, I., & Wibawa, B. M. (2016). Pengaruh online customer review dan rating terhadap kepercayaan dan minat pembelian pada online marketplace di Indonesia. Jurnal Teknik ITS, 5(2), 614-619.Firdayanti, Restika. (2012). Persepsi risiko melakukan e-commerce dengan kepercayaan konsumen dalam membeli produk fashion online. Journal of Social and Industrial Psychology, 1(1), 1-7.Grail Research. (2011). Consumers of tomorrow insights and observations about generation Z.Hakim, Lukmanul. (2017). Distorsi pasar dalam pandangan ekonomi Islam. Ekomadania, 1(1), 1-15.iPrice insight. (2019). Peta E-Commerce Indonesia 2019. (www.iprice.co.id).Karim, Adiwarman A. (2018). Ekonomi Mikro Islam. Depok: PT Rajagrafindo Persada.Laporan Survei Asosiasi Penyelenggara Jasa Internet Indonesia. (2019). Penetrasi & profil perilaku pengguna internet Indonesia 2018. (www.apjii.or.id)Manalu, A. S. B., Sumarwan, U., & Suroso, A. I. (2007). Analisis faktor - faktor yang mempengaruhi kepuasan pelanggan online. Jurnal Manajemen dan Agribisnis, 4(2), 67-80.Penulis (2018). Jawa masih mendominasi penetrasi E-Commerce Indonesia. (www.databoks.katadata.co.idPratama, Hellen Chou. (2012). Cyber smart parenting. Bandung: PT. Visi Anugerah Indonesia.Pusat Pengkajian dan Pengembangan Ekonomi Islam (P3EI). (2015). Ekonomi Islam. Jakarta: Rajawali Pers.Putra, N.P dan Panto, Y. J. (2012). Aplikasi E-marketplace berbasis web 2.0. Skripsi tidak diterbitkan. Palembang: STMIK GI MDP.Sarwono, J. 2006. Metode penelitian kuantitatif dan kualitatif. Yogyakarta: Graha Ilmu.Sudjana, Nana & Ibrahim. (1989). Penelitian dan penilaian pendidikan. Bandung: Sinar Baru.Sugiyono. (2019). Metode penelitian pendidikan (kuantitatif, kualitatif, kombinasi, R&D, dan penelitian pendidikan). Bandung: Alfabeta.Singarimbun, Masri & Effendi, Sofian. (1995). Metode penelitian survei. Jakarta: PT Pustaka LP3ES.Tempo.co. (2017). Riset Google: Warga Surabaya Paling Banyak Belanja Online. (www.tempo.co).

Affordable housing with fair and transparent land-allocation measures is a challenge for many countries. The Sultanate of Oman solves this issue by means of land-allocation lotteries in which male and female citizens can participate in order to win a parcel of a new housing area. Besides supporting those in financial need the lottery aims to mix the separate tribes of Oman and thus contribute to the nation building of a modern society. In an earlier work, we showed that there must be severe doubts about the economic support aspect as it seems that the current lottery, without additional measures, fuels private land speculation, see Heim et al. (Homo Oecon 35:1–30, 2018). This article studies the emergent phenomenon of clan formation within the specific land-allocation system of Oman with a new mathematical and computational approach of agent-based modelling. This model is used to base the criticism to the system on scientific evidence. Both the method (clan formation exemplified as agent-based model) and findings (simulated agents and real-world behaviour) advance the discussion on how to mitigate some of the negative effects associated with the current land allocation system. To do so, we discuss the current state and criticism around this aspect of urbanisation in Oman. We study the spatial mixing of the tribes and the possibility of clan formation in modern Omani settlements in particular Muscat Capital Area. We see emergent phenomena arising from the agent-based model that matches real world behaviour leading to negative effects such as partial and incomplete land development, tribal clustering and real-estate market distortion. The agent-based model is used to discuss alternative scenarios under which tribal clan formation is used to generate a fairer and more complete settlement process in Oman to ensure the intended outcomes of Oman’s land-allocation lottery system., City, Territory and Architecture, 5, ISSN:2195-2701

A loose financial policy through the provision of loans and fiscal subsidies to state-owned enterprises and households has long been practiced in China, though financial liberalization since the 1980s has revitalized banks and other institutions. By using provincial data, this paper attempts to show the relationship between liquidity and productivity in post-reform China. China’s total factor productivity growth is estimated by the Malmquist index. A total of four regression models have been employed and the findings support the inverse relationship between liquidity and productivity, especially since 2008. China’s loose financial policy that promoted “cash-richness” must be reexamined as excessive liquidity coexisted with decline in total factor productivity. An increase of 1% in liquidity would result in about 0.6% loss in total factor productivity due to market distortion.

The act of speculators distorting the market is quite unsettling. However, the Sharia texts show that this problem can be resolved using moral or akhlāqī . Then the question is whether the present government can overcome it by using qadā'īe imposing sanctions for distortion. Since the nature of Sharia is the universal and eternal, this issue must be answered comprehensively and holistically. For that reason, the maqāsid approach is operated with istislāhiyyah method. This method is also referred to as al-ijtihād al-maqā s} idī which is done in two stages, namely takhrīj al-manāt and tahqīq al-manāt . It is believed that this method is quite relevant to answer two research questions. Firstly, how is maqā s} id al-syar'ah in terms of market distortion? Secondly, does the government in syar'i be authorized to impose sanctions on the perpetrators of market distortion? The theory used to highlight this issue is the theory of al-wāzi' put forward by Ibn ‘Āsyūr. This conclu that the Sharia wants the circulation of goods in the market run smoothly. To that end, the government may impose sanctions if the distortion is done to the basic goods that can affect massively harm.

Negative prices are a correct signal representing the system's scarcity of downward flexibility, but also result from a market distortion caused by renewable support mechanisms. In the worst case, these withhold active market participation, as in Germany, with its feed-in-tariff coupled with a stringent curtailment policy. In the best case, these result in negative bids under their marginal production cost to recover lost subsidies, as in Belgium.

This paper studies the effect of market distortions in the manufacturing sector in Morocco. Recent microdata are used to calculate the extent of resource misallocation associated to these distortions and the potential total factor productivity (TFP) gain resulting from their removal. Market distortions in the manufacturing sector in Morocco are higher compared with developed countries and slightly more important compared with other developing countries, such as China and India. These distortions decreased between 2007 and 2013. Full liberalization would raise TFP by about 84 percent. If distortions are removed to the level of selected developed countries with better resource allocation, the increase in TFP would be of 56 percent. The paper also finds that industries that are more opened to competition (international and domestic) such as machinery and textiles industries present lower levels of market distortions compared with more protected industries with relatively little competition, such as the food industry. Besides, a higher level of TFP can be achieved if more resources are allocated to “young” and “small” firms. The main results of the paper are robust to an alternative estimation that uses a different methodological framework with a less extensive theoretical framework. The paper discusses policies to further limit the extent of product and factor market distortions in Morocco.

International trade is primarily conducted by large, multiproduct firms (MPFs) that pay above average wages and exhibit high productivity. In this paper we show that if firms can invest in management technologies for identifying worker skill then they will enjoy a form of market power in the labor market that artificially lowers their labor costs. This market failure results in excessive consumption of resources by large, productive exporting firms relative to the social optimum. Trade liberalization then has an ambiguous effect on aggregate welfare: lower trade costs increase access to foreign goods but also exacerbates the labor market distortion as resources are transferred to large firms. The model highlights the need to know why firms “excel” before drawing welfare conclusions regarding cross firm reallocations of resources.

Sustainable economic development has played a major role in the decline Of global poverty in the past two decades. There is no doubt that competitive markets are key drivers of economic growth and productivity. They are also valuable channels for consumer welfare. Competition policy is a powerful tool for complementing efforts to alleviate poverty and bring about shared prosperity. An effective competition policy involves measures That enable contest-ability and firm entry and rivalry, while ensuring the enforcement of antitrust laws and State aid control. Governments from emerging and developing economies are increasingly requesting pragmatic solutions tor effective competition policy implementation, as well as recommendations for pro-competitive sectoral policies. A Step Ahead: Competition policy for Shared Prosperity and Inclusive Growth puts forward a research agenda that advocates the importance Of market competition, effective market regulation, and competition policies for achieving inclusive growth and shared prosperity in emerging and developing economies. It is the result of a global partnership and shared commitment between the World Bank Group and the Organization for Economic Co-operation and Development (OECD). Part I of the book brings together existing empirical evidence. On the benefits of competition for household welfare. It covers the elimination Of anti-competitive practices and regulations that restrict competition in key markets and highlights the effects of competition on small producers and employment. Part II of the book focuses on the distributional effects of competition policies and how enforcement Can be better aligned with shared prosperity goals.

Scientific discoveries, technological achievements and R&D investment are mainly from the developed countries. Developing economies belong to the technical followers and imitators. So, international technology spillover is significant for them. Considering our Chinese policy and market characteristics, the paper selected 1999–2015 Provincial Panel Data, gave an empirical test about the effects of factor market distortions on international technology spillovers before and after policy-oriented. The results showed that the technology spillover effects of the import trade, FDI and patent applications presented different feature in different stages. In the original phase (1999–2007), local governments controlled the resource elements' pricing power leading to factor market distortions, thus weakening and barraging the international spillover effects. In policy orientation phase (2008–2015), government payed more attention to the quality of economic development, the degree of market distortion factors significantly reduced and the role of market mechanism played, international technology spillover got an increase gradually.

Entrepreneurial resilience in spite of the state. Verhoef outlines business activity during the post-independence period in Africa as having to negotiate new market distortion in the form of authoritarian regimes, where political favouritism and different forms of discrimination characterised newly independent states. Formerly, unknown cases of business resilience under conditions of socialist macro-economic policies and a dominant position for state-owned enterprises in the leading economic sectors of the new states are discussed, whereby the state-business relationship since the 1960s emerges. Verhoef describes the Botswana exception as a case of business-state inclusivity, as opposed to statutory ethnic marginalisation and nationalisation that destroyed opportunity and undermined growth in independent states. Verhoef illustrates the inhibiting impact of state power on the development of small entrepreneurs and managerial capabilities in the private sector, as SOE management failed the states.

This paper shows that Investor-State Dispute Settlements (ISDS) makes multinational firms more aggressive by increasing cost-reducing investments with the aim to enlarge the potential compensation an ISDS provision may offer. While a larger investment reduces the market distortion, it will also make potential compensations larger. Consequently, potential compensations to a foreign investor do not imply a zero-sum game. ISDS may decrease domestic welfare, in particular if the investment leads to the establishment of an export platform, and we find that even global welfare may decline.

This chapter examines endogenous growth models in which equilibrium intermediacy may emerge. It is known that some endogenous growth models assume that there is no market distortion and that every production factor is reproducible under constant returns to scale technologies. In this class of models, the perfect-foresight competitive equilibrium coincides with the optimal growth path of a social planning problem, so that equilibrium indeterminacy will not arise in those models. However, the majority of endogenous growth models assume the presence of technological spillover and external effects to sustain continuing growth in the absence of exogenous technical change.

This paper analyses three typical barriers that lead to market distortion in contemporary China: market segmentation, industry monopoly, and industrial policy. Then we estimate the efficiency and welfare loss caused by these three barriers. The results show that the loss caused by market segmentation and industry monopoly respectively account for 6.42% and 18% of annual GDP. And either market segmentation or industry monopoly has been deeply influenced by industrial policies. These distortions must be corrected if we truly want to establish a unified and open market system with orderly competition identified by the third plenary session of the 18th Communist Party Central Committee of CPC. To achieve this goal, we should not only change policies, but reform institutions as well.

The trade practices of giving subsidies are normally defined as financial support in cash or in kind, if made in favour of an undertaking by the state. This support can either be direct or indirect in form, for the goods or services that any such industry produces. Trade-subsidy supported by the national government often leads to the distortion of efficient and competitive market system or can either be a protectionist measures, and hence, violates the underlying principles of fair-trade. Fair trade principle although not emphasised as the main trading principles of governing free trade, however is effectuated as a regulatory measure through the SCM Agreement provisions.

Minimum parking standards, which require developers to build a certain amount of off-street parking spaces, are increasingly criticized for leading to excess parking supply and automobile travel in recent years. However, due to the difficulty in identifying the policy effect, few empirical studies have directly and accurately estimated the effects of parking standards on parking supply. The present study examines a parking reform in London, UK, where minimum parking standards for residential developments were replaced with maximum standards in the early 2000s. Using planning application records, we match neighboring pre-reform and post-reform developments to estimate the effect of the parking standard switch and further identify the “binding” and “capping” effects of minimum and maximum parking standards. It is found that the parking reform in London has led to a reduction of approximately 0.76 parking spaces per unit in residential development applications, or 49% of the pre-reform level. Minimum parking standards seem to have a larger impact than maximum ones on parking supply that fell more upon inner city developments, while maximum parking standards have more influenced suburban neighborhoods. Market forces have played a major role in the decline of parking supply. The findings provide strong evidence for the market distortion effect of minimum parking standards.

In this paper we expand the IRSP (integrated resource strategic planning) model by including the external cost of TPPs (traditional power plants) and popularization cost of EPPs (efficiency power plants) with nonlinear functions. Case studies for power planning in China during 2011–2021 are conducted to show the efficacy of the model. Scenarios are compiled to compare the pathways of power planning under different policies. Results show that: 1) wind power will become competitive with technical learning, but its installation is undesirable when the external cost of coal power is not internalized; 2) the existence of popularization cost will hinder EPPs' (efficiency power plants) deployment and pure market mechanism is not enough to deliver EPPs at socially desirable scale; 3) imposition of progressive emission tax on coal power at an average of 0.15–0.20 RMB/KWh can remedy the market distortion and promote the development of wind power by a significant margin; 4) nuclear power will grow stably when its external cost is set no more than 0.187 RMB per KWh, or 87% of its internal cost. The proposed model can serve as a useful tool for decision support in the process of power planning and policy formulation for national government.

Empirical studies show that market concentration and pricing policies regulation have an important impact on price transmission. These factors lead to an asymmetric price transmission, particularly in agricultural commodities markets. This paper investigates farm-retail price transmission along the Canadian dairy and pork values chains using Threshold Autoregressive, Momentum Threshold Autoregressive, Error Correction Models and Granger causality test. Using monthly price data, we found that farm-retail price transmission is asymmetric in short and long-term between raw milk and butter price while it is symmetric in the cheese case. In the pork sector, price transmission is asymmetric in long-term and symmetric in short-term between farm price and respectively pork chops and bacon prices. Because of processor and retailer concentration, consumer prices respond more quickly to upward than downward of farm prices. The processors, retailers and distributors concentration along the value chain in Canadian dairy and pork sectors and the supply management regulation policies as well as income stabilization insurance program are the main factors generating this market structure. Consideration of the characteristics of farmers, processors, and retailers in the value chain and the actors’ potential reactions to the agricultural policy could better protect consumers and producers from market distortion.

Getting a volatility exposure has become easier for investors after the relatively recent introduction of volatility ETNs (exchange-traded notes) and volatility ETFs (exchange-traded funds), and some of these products have enjoyed a surge in popularity. In this article, the authors use the recent crisis with TVIX—a volatility ETN—to underline important differences between ETNs and ETFs that appear to be at the source of the observed market distortion. The authors emphasize an important feature of these products—that they track constant maturity VIX futures indexes rather than the VIX index itself, which has an impact on the quality of the volatility exposure because of the roll-over costs and the lack of cash-and-carry-arbitrage relationship.

This paper investigates the role of recent pension reforms for the development of the social security system and economic growth in Austria. We use a computable general equilibrium model that is built up of overlapping generations that differ by their household structure, longevity, educational attainment, and capital accumulation. Each household optimally decides over its consumption paths, work effort, and retirement age according to the life-cycle theory of labor, while they face survival risk. We find that the pension reforms implemented from 2000 to 2004, although in the correct direction, are not sufficient to solve the labor market distortion caused by the Austrian pay-as-you-go (PAYG) pension system. Using alternative policy options, our simulations indicate that a change to a notional defined contribution system and an increase in the educational distribution of the work force would increase the incentive for later retirement ages and thereby increase labor supply and economic growth.