A statistical generalization is made of microeconomics in the spirit of going from classical to statistical mechanics. The price and quantity of every commodity1 traded in the market, at each instant of time, is considered to be an independent random variable: all prices and quantities are considered to be stochastic processes, with the observed market prices being a random sample of the stocha...

We consider risk-aware forest owners and electricity producers evaluating the Reduced Emissions from Deforestation and Degradation (REDD)-based offsets with a benefitsharing mechanisms under uncertain CO2 prices. For a range of CO2 prices and respective risks perceived by the forest owner (seller) and electricity producer (buyer), we apply a model of fair (indifference) pricing. Parties’ risk p...

t he objective of this study is using the markov switching vector autoregressive method and regime dependent impulse response functions to measure the pass-through of world food prices to consumer price index in iran from 1990 to 2013. with respect to information criteria and the log-likelihood ratio statistic, msia(2)-var(1) model has a better fit to data than other models. the magnitude of th...

Inflation-adjusted farm prices and farm-wholesale marketing margins for beef and pork have declined over several decades. For example, from 1970 to 1998, real slaughter steer and hog prices declined by 50% and 66%, respectively, while real beef and pork farm-wholesale (FW) marketing margins declined by 57% and 65%, respectively (Figures 1 and 2). These changes have been attributed to declining ...

We consider risk-aware forest owners and electricity producers evaluating the Reduced Emissions from Deforestation and Degradation (REDD)-based offsets with a benefitsharing mechanisms under uncertain CO2 prices. For a range of CO2 prices and respective risks perceived by the forest owner (seller) and electricity producer (buyer), we apply a model of fair (indifference) pricing. Parties’ risk p...

Producer brands increasingly dominate the international wine market. Concurrently, generic advertising campaigns are launched in an attempt to promote wine origin and exports (e.g. Australia, Austria, Spain). We analyze U.S. price data and quality indicators for 24 wine growing regions within eleven countries using a hedonic modeling approach. We assess the value of producer brands vs. geograph...

Nie and Rutkowski [21, 22] examined fair bilateral pricing in models with funding costs and an exogenously given collateral. The goal of this work is to extend their results to the case of an endogenous margin account, that is, the collateral that may depend on the contract’s value for the hedger and/or the counterparty. Comparison theorems for BSDEs from Nie and Rutkowski [23] are used to deri...

This article investigates the dynamics of property prices and their interaction with output growth in a general equilibrium model. Closed form solutions and testable hypotheses are derived from a mildly restricted version of the model. The testable hypotheses are broadly supported empirically. In particular, (1) the volatility of commercial property prices is higher than that of residential pro...

Broader behavioural modelling exercises suggest a wide range of costs of climate-change mitigation and abatement, mostly lying in the range –2 to +5% of annual GDP by 2050 for a variety of stabilisation paths. These capture a range of factors, including the shift away from carbon-intensive goods and services throughout economies as carbon prices rise, but differ widely in their assumptions abou...