Supply Curve (supply + curve)

Distribution by Scientific Domains

Selected Abstracts

The New Keynesian Phillips Curve: From Sticky Inflation to Sticky Prices

New Keynesian Phillips Curve; inflation survey forecasts; sticky prices; structural breaks; monetary policy The New Keynesian Phillips Curve (NKPC) model of inflation dynamics based on forward-looking expectations is of great theoretical significance in monetary policy analysis. Empirical studies, however, often find that backward-looking inflation inertia dominates the dynamics of the short-run aggregate supply curve. This inconsistency is examined by investigating multiple structural changes in the NKPC for the U.S. between 1960 and 2005, employing both inflation expectations survey data and a rational expectations approximation. We find that forward-looking behavior plays a smaller role during the high and volatile inflation regime to 1981 than in the subsequent period of moderate inflation, providing empirical support for sticky price models over the last two decades. A break in the intercept of the NKPC is also identified around 2001 and this may be associated with U.S. monetary policy in that period. [source]

Assessing oil resources in the Middle East and North Africa

Roberto F. Aguilera
Some energy experts are concerned that the world will soon face a global crisis to dwindling oil resources and a peak in production. This paper analyses the concern by estimating a cumulative supply curve for conventional oil in the Middle East and North Africa (MENA) region. It does so by attaching production costs to the endowment volumes of oil in the region, including volumes from provinces not previously assessed. A Variable Shape Distribution model is used to estimate the volumes of the previously unassessed provinces. The findings show that MENA oil should last far longer than some concerned experts claim. In addition, the production costs are lower than current market oil prices and significantly lower than prices observed in mid-2008. [source]

Are Employment Effects of Gender Discrimination Important?

Some Evidence from Great Britain
Interpreting the unexplained component of the gender wage gap as indicative of discrimination, the empirical literature to date has tended to ignore the potential impact wage discrimination may have on employment. Employment effects may arise if discrimination lowers the female offered wage and the labour supply curve is upward sloping. The empirical analysis employs the British Household Panel Study and finds evidence of both wage and associated employment effects. [source]

An empirical assessment of the value of irrigation water: the case study of Murrumbidgee catchment,

Muhammad Ejaz Qureshi
Evaluation of value of irrigation water is essential for supporting policy decision making relating to investments in the irrigation sector, efficient allocation of irrigation water and water pricing and for crafting policies to compare the variable impacts of water reform within and across sectors of the economy. This paper asks the question of how much an established irrigator would pay for water and at what price farmers planning to expand the area they have under irrigation would consider paying for the right to access water. An analytical framework is developed to estimate the net present value of both annual and perennial agricultural activities in the Murrumbidgee catchment. Using these estimates the total value of water used in Murrumbidgee catchment is estimated. An aggregate water supply curve is derived for the catchment from where water may be acquired from irrigators for environmental flows. [source]

Modelling the supply of ecosystem services from agriculture: a minimum-data approach,

John M. Antle
We argue that to support agriculture,environmental policy decision making, stakeholders need ,quantitative back-of-the-envelope' analysis that is timely and sufficiently accurate to make informed decisions. We apply this concept to the analysis of the supply of ecosystem services from agriculture. We present a spatially explicit production model and show how it can be used to derive the supply of ecosystem services in a region. This model shows that the supply of ecosystem services can be derived from the spatial distribution of opportunity cost of providing those services. We then show how this conceptual model can be used to develop a minimum-data (MD) approach to the analysis of the supply of ecosystem services from agriculture that can be implemented with the kinds of secondary data that are available in most parts of the world. We apply the MD approach to simulate the supply of carbon that could be sequestered in agricultural soils in the dryland grain-producing region of Montana. We find that the supply curve derived from the MD approach can approximate the supply curve obtained from a more elaborate model based on site-specific data, and can do so with sufficient accuracy for policy analysis. [source]

External Demand Decline-caused Industry Collapse in China

Pingyao Lai
J60; L15; L52 Abstract Industry collapse has become an important phenomenon in China's recent economic growth fluctuation. This paper develops a simple model to analyze this phenomenon. Our analysis focuses on an external demand decline-caused industry collapse. The model reveals that the combination of large-scale decline in external demand with a horizontal domestic supply curve causes the domestic export industry to undergo a sharp decrease in output in a short period of time, which further leads to a sharp decline in employment. The conventional stabilization policy is less effective in coping with this sudden industry collapse. The Chinese Government needs to formulate an appropriate structural industry stabilization policy to cope with the sudden industry collapse, and, in particular, to implement a direct employment aid program to deal with unemployment resulting from the industry collapse. [source]

Physicians' Labour Supply: The Wage Impact on Hours and Practice Combinations

LABOUR, Issue 4 2005
Erik Magnus Sæther
Increased wages is one instrument for boosting the hours provided by the personnel to the prioritized sub-markets. This study applies an econometric framework that allows for non-convex budget sets, non-linear labour supply curves and imperfect markets with institutional constraints. The labour supply decision is viewed as a choice from a set of discrete alternatives (job packages) in a structural labour supply model estimated on Norwegian micro data. An out-of-sample prediction is also presented and evaluated by means of a natural experiment. [source]

Seasonality and Wage Responsiveness in a Developing Agrarian Economy

Sunil Kanwar
Abstract This paper studies the wage responsiveness of labour supply and demand, simultaneously addressing the twin issues of the non-clearing of developing rural labour markets and seasonality. It employs a data set pertaining to south-central India, and limits itself to the agricultural market for daily-rated labour (by far the predominant form of wage contract in the sample villages). Estimating a theoretically robust and empirically justified disequilibrium model of the agricultural labour market, we find no evidence of backward-bending supply curves or ,vertical' demand curves, contrary to findings in the literature. Further, while the agricultural labour market appears to be in equilibrium during the kharif (or rainy) season, it manifests excess supply in the rabi (or post-rainy) season. [source]

Minimum-data analysis of ecosystem service supply in semi-subsistence agricultural systems

John M. Antle
Antle and Valdivia (2006, Australian Journal of Agricultural and Resource Economics 50, 1,15) proposed a minimum-data (MD) approach to simulate ecosystem service supply curves that can be implemented using readily available secondary data and validated the approach in a case study of soil carbon sequestration in a monoculture wheat system. However, many applications of the MD approach are in developing countries where semi-subsistence systems with multiple production activities are being used and data availability is limited. This paper discusses how MD analysis can be applied to more complex production systems such as semi-subsistence systems with multiple production activities and presents validation analysis for studies of soil carbon sequestration in semi-subsistence farming systems in Kenya and Senegal. Results from these two studies confirm that ecosystem service supply curves based on the MD approach are close approximations to the curves derived from highly detailed data and models and are therefore sufficiently accurate and robust to be used to support policy decision making. [source]