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Real Markets (real + market)
Selected Abstracts,Milking The Elephant': Financial Markets as Real Markets in KenyaDEVELOPMENT AND CHANGE, Issue 2 2004Susan Johnson Financial liberalization policies in the 1990s were intended to raise formal sector interest rates, enhance competition and expand access for users. This article investigates patterns of provision and use in a local financial market in Karatina, Kenya, at the end of the 1990s after a period of financial and economic liberalization. It takes a holistic approach, examining both formal and informal financial arrangements and microfinance interventions. This is because the role of the informal financial sector is particularly important for poor people and has received relatively little attention in the discussion of the consequences of reform. The author does this using a ,real' markets approach that sees markets as socially regulated and structured. Significant provision by the mutual sector (formal and informal), and poor lending performance by the banking sector is explained through an examination of the characteristics of the services on offer and their embeddedness in social relations, culture and politics. [source] Divergence in alternative Hicksian welfare measures: the case of revealed preference for public amenitiesJOURNAL OF APPLIED ECONOMETRICS, Issue 6 2002Dr Sudip Chattopadhyay This paper investigates the divergence between the two Hicksian welfare measures of non-traded amenity improvement associated with housing. First, the Hicksian surplus measures for amenity changes are analytically developed based on explicit specification of utility structures. A hedonic two-stage approach is then applied to empirically show that, for quantity changes, in contrast to hypothetical markets, divergence in real market is small. The paper also analytically develops expressions for the income and substitution effects and empirically shows that for a given income effect, the greater the substitution effect the smaller the divergence between the two measures. Copyright © 2002 John Wiley & Sons, Ltd. [source] Examining the use of subsidies for the abatement of greenhouse gas emissions through experimental simulationsENVIRONMENTAL POLICY AND GOVERNANCE, Issue 4 2006Lars E. Olsson Abstract A market experiment was designed to empirically investigate the potential effectiveness of a governmental subsidy system to reduce sales and therefore production of environmentally harmful products. The important issue of whether the subsidy system preserves competitiveness was also examined. In the experiment two levels of a subsidy for unsold units were compared with no subsidy. To simulate the way in which subsidy levels may vary across time in real markets, the effects of high and low uncertainty regarding the subsidy level were also investigated. The results showed that subsidies, whether known and fixed or uncertain and varying, did not erode competition but nevertheless led to higher prices, which resulted in fewer sales. In the control condition a price war resulting in decreasing prices and increasing sales were observed. Several ways in which the proposed subsidy system may be implemented in the transport sector and other sectors are discussed. It is suggested that subsidies may make the adjustment process toward sustainable production less costly for the regulated parties. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment. [source] CONSTANT PROPORTION PORTFOLIO INSURANCE IN THE PRESENCE OF JUMPS IN ASSET PRICESMATHEMATICAL FINANCE, Issue 3 2009Rama Cont Constant proportion portfolio insurance (CPPI) allows an investor to limit downside risk while retaining some upside potential by maintaining an exposure to risky assets equal to a constant multiple of the cushion, the difference between the current portfolio value and the guaranteed amount. Whereas in diffusion models with continuous trading, this strategy has no downside risk, in real markets this risk is nonnegligible and grows with the multiplier value. We study the behavior of CPPI strategies in models where the price of the underlying portfolio may experience downward jumps. Our framework leads to analytically tractable expressions for the probability of hitting the floor, the expected loss, and the distribution of losses. This allows to measure the gap risk but also leads to a criterion for adjusting the multiplier based on the investor's risk aversion. Finally, we study the problem of hedging the downside risk of a CPPI strategy using options. The results are applied to a jump-diffusion model with parameters estimated from returns series of various assets and indices. [source] Preparing for the ,real' market: national patterns of institutional learning and company behaviour in the European Emissions Trading Scheme (EU ETS)ENVIRONMENTAL POLICY AND GOVERNANCE, Issue 5 2008Anita Engels Abstract European companies have reacted in different ways to the European Emissions Trading Scheme (EU ETS), Phase I. While some companies engaged in an active trading behaviour focused on additional revenues, others adopted a strategy orientated to mere compliance with the scheme and aimed for balanced accounts only. This article provides the outcomes of a survey on company behaviour under the EU ETS in Germany, the United Kingdom, the Netherlands and Denmark from 2005 to 2006, in which cross-national differences in trading behaviour are linked to national patterns of policy implementation and the political economies in which companies operate. Thus, specific country patterns of institutional preparation and institutional learning for the ,real' CO2 allowance market in Phase II of the EU ETS (2008,2012) are sketched. Whereas Phase I is distinguished by a net over-allocation of allowances, Phase II is expected to entail some level of scarcity of allowances. We argue that companies are prepared differently to meet the challenges of the future EU ETS. Copyright © 2008 John Wiley & Sons, Ltd and ERP Environment. [source] ,Milking The Elephant': Financial Markets as Real Markets in KenyaDEVELOPMENT AND CHANGE, Issue 2 2004Susan Johnson Financial liberalization policies in the 1990s were intended to raise formal sector interest rates, enhance competition and expand access for users. This article investigates patterns of provision and use in a local financial market in Karatina, Kenya, at the end of the 1990s after a period of financial and economic liberalization. It takes a holistic approach, examining both formal and informal financial arrangements and microfinance interventions. This is because the role of the informal financial sector is particularly important for poor people and has received relatively little attention in the discussion of the consequences of reform. The author does this using a ,real' markets approach that sees markets as socially regulated and structured. Significant provision by the mutual sector (formal and informal), and poor lending performance by the banking sector is explained through an examination of the characteristics of the services on offer and their embeddedness in social relations, culture and politics. [source] | |||||||||||||