In April 2003 the U.S. Federal Energy Regulatory Commission proposed the Wholesale Power Market Platform (WPMP) for common adoption by U.S. wholesale power markets. The WPMP is a complicated market design encompassing real-time, day-ahead, ancillary, and financial transmission rights markets. Variants of the WPMP have been adopted in various parts of the U.S. (e.g., New England), but other regi...

I conduct an empirical investigation into the pricing of subprime asset-backed collateralized debt obligations (CDOs) and their contagion effects on other markets. Using data for the ABX subprime indexes, I find strong evidence of contagion in the financial markets. The results support the hypothesis that financial contagion was propagated primarily through liquidity and risk-premium channels, ...

When do financial markets help in predicting economic activity? With incomplete markets, the link between financial and real economy is statedependent and financial indicators may turn out to be useful particularly in forecasting "tail" macroeconomic events. We examine this conjecture by studying Bayesian predictive distributions for output growth and inflation in the US between 1983 and 2012, ...

Economic efficiency is the ultimate goal of all markets, including electricity market. Several technical and pecuniary restrictions known as externalities in economics literature can significantly affect economic Negative resulting from operational generation units are inherent to markets. In this paper, after reviewing effects on day-ahead markets' using a unit commitment-based model, an innov...

With the growth of electronic markets, designing double auction mechanisms that are applicable to emerging market structures has become an important research topic. In this paper, we investigate two truthful double auction design approaches, the Trade Reduction Approach and the Multi-Stage Design Approach, and compare their resulting mechanisms in various exchange environments. We find that com...

Recently, economic and environmental problems have created a strong attitude toward utilizing renewable energy sources (RESs). Nevertheless, uncertainty of wind and solar power leads to a more complicated energy management (EM) of RESs in microgrids. This paper models and solves the EM problem of microgrid from the generation point of view. To do this, mathematical formulation of a grid- connec...

In an electricity market, every generation company (GENCO) attempts to maximize profit according to other participants bidding behaviors and power systems operating conditions. The goal of this study is to examine the optimal bidding strategy problem for GENCOs in energy and spinning reserve markets based on a hybrid GA-heuristic optimization algorithm. The heuristic optimization algorithm used...