Considering the sequential clearing of energy and reserves in Europe, enabling inter-area reserve exchange requires optimally allocating transmission capacities between these two markets. To achieve this, we provide a market-based allocation framework derive payments with desirable properties. The proposed min-max least core selecting individual rationality, budget balance, approximate incentiv...

It is well known that given a network that can become constrained on voltage or real power flows, reserves must also be spatially located in order to handle all credible contingencies. However, to date, there is no credible science-based method for assigning and pricing reserves in this way. Presented in this paper is a new scheduling algorithm incorporating constraints imposed by grid security...

The Federal Reserve implements monetary policy by making discrete adjustments to its target for the federal funds rate. Such adjustments are believed to have significant implications for other short-term interest rates, so considerable resources are expended on forecasting the timing and magnitude of the Fed’s next move. Many analysts, both inside and outside of the Federal Reserve System, look...

It is commonly believed that the Fed’s ability to control the federal funds rate stems from its ability to alter the supply of liquidity in the overnight market through open market operations. This paper uses daily data compiled by the author from the records of the Trading Desk of the Federal Reserve Bank of New York over the period March 1, 1984, through December 31, 1996: He analyzes the Des...