Any serious empirical study of factor substitutability has to allow the data to display complementarity as well as substitutability. The standard approach reflecting this idea is a translog specification – this is also the approach used by numerous studies analyzing the relative capital-skill complementarity hypothesis formulated by GRILICHES (1969). According to this hypothesis, the degree of ...

We extend a well known differential oligopoly game to encompass the possibility for production to generate a negative environmental externality, regulated through Pigouvian taxation and price caps. We show that, if the price cap is set so as to fix the tolerable maximum amount of emissions, the resulting equilibrium investment in green R&D is indeed concave in the structure of the industry. Our...

ing from the gap between decision and experienced utility, we find that behavioral biases do not impose additional costs on welfare. This interpretation is consistent with the concept of internality proposed by Allcott et al. (2014) and the model of behavioral biases proposed by Farhi and Gabaix (2015). In contrast, we represent transaction cost microfrictions as an economic cost C that the con...

with the development of restructured power systems and increase of prices in some hours of day and increase fuel price, demand response programs were noticed more by customers. demand response consists of a series of activities that governments or utilities design to change the amount or time of electric energy consumption, to achieve better social welfare or some times for maximizing the benef...

Different policies have been implemented around the world seeking to deliver demand response potential in the electricity markets. Externalities, namely the CO2 externality, have been one of the key concerns in the debate on the effectiveness of different policies regarding demand response development. Although most previous researches have centred on the short-term assessment of different poli...

With the development of deregulated power systems and increase of prices in some hours of day and increase fuel price, demand response programs were noticed more by customers. demand response consists of a series of activities that governments or utilities design to change the amount or time of electric energy consumption, to achieve better social welfare or some times for maximizing the benefi...

We propose a model of price competition where consumers exogenously differ in the number of prices they compare. Our model can be interpreted either as a non–sequential search model or as a network model of price competition. We show that i) if consumers who previously just sampled one firm start to compare more prices all types of consumers will expect to pay a lower price and ii) if consumers...

This paper considers an econometric approach to measuring substitutability of three types of energy, i.e. crude oil, electricity and diesel with capital and labour in the manufacturing sector of Greek industry during the period 1970]1990. A general dynamic framework is developed under the assumption that the structure of the production process is weakly separable in capital, labour and energy a...

This study aims to analyze the development of input and output prices, translog profit function, elasticity demand for lowland rice farming inputs in Jambi Province. The function model used is Transcendental Logarithmic (Translog) function. results show that · prices has increased significantly every year. production factors affect profitability are price seeds, TSP fertilizer, other chemical f...