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Market Intervention (market + intervention)
Kinds of Market Intervention Selected AbstractsNon,Market Interventions in Water,Sharing:Case Studies from West Bengal, IndiaJOURNAL OF AGRARIAN CHANGE, Issue 4 2002Vikas Rawal This paper deals with two issues that are important areas of concern in the recent literature on water management in less,developed countries: forms of ownership of groundwater resources and alternatives to anarchy in the exploitation and use of groundwater. The emergence of a market for irrigation water has been argued to have the potential to provide irrigation water to large numbers of small cultivators in developing countries. The development of free markets for water, however, has also been shown to be associated with the emergence of ,water,lords' and with contracts for the purchase and sale of water that are biased against the poor. By contrast, this paper presents two examples of viable non,market interventions in water,sharing , regulation of water markets by village councils and cooperative tubewell groups , from villages in West Bengal, India. These interventions both improved the efficiency of water,use and represented relatively equitable arrangements for water,sharing. [source] THE ECONOMICS OF ACHIEVING COMPETITIVE BALANCE IN THE AUSTRALIAN FOOTBALL LEAGUE, 1897,2004ECONOMIC PAPERS: A JOURNAL OF APPLIED ECONOMICS AND POLICY, Issue 4 2004Ross Booth This paper summarises some key aspects of a theoretical and empirical analysis of whether various labour market devices and revenue-sharing rules used in the Victorian Football League/Australian Football League (VFL/AFL) since its inception in 1897 have increased competitive balance by reducing the inequality in the distribution of player talent between clubs. The history of labour market intervention and revenue sharing in the VFL/AFL is discussed, with six different periods between 1897 and 2004 identified for analysis. Fort and Quirk's (1995) model of US professional team sports leagues is used to analyse the effectiveness of the various devices that have been used in the VFL/AFL, but only after adapting the model to allow for VFL/AFL clubs being win maximisers (subject to a budget constraint) rather than profit maximisers. The various devices used by the VFL/AFL are assessed in terms of their likely impact on competitive balance, with some significantly different theoretical predictions than under profit maximisation. It is found that free agency results in a less equal distribution of player talent under win maximisation, whilst both gate sharing and increases in shared league-revenue tend to equalise playing strengths (which is not the case under profit maximisation). Moreover, the invariance principle, that the effect of a player draft will be undermined by the sale (and/or trade) of player talent, is found not necessarily to hold under win maximisation and can be reduced or eliminated with a team salary cap. Whether the trade of players and draft choices can undermine a player draft is also considered. The conclusion reached is that a player draft, a team salary cap, and revenue sharing is the combination most likely to succeed in achieving higher levels of competitive balance. The evidence of competitive balance in the VFL/AFL is consistent with these predictions. [source] Testing the Regulatory Model: The Expansion of Stansted AirportFISCAL STUDIES, Issue 4 2004DAVID STARKIE This paper examines the application of price-cap regulation to the UK airport industry, with particular reference to the expansion of London-Stansted. This expansion is relevant to the debate concerning investment incentives inherent in the RPI,X approach and whether the UK style of regulation encourages the ,sweating of assets' at the expense of new investment. Stansted's expansion also suggests a willingness of the authorities to accept the leveraging of market power in pursuit of perceived public-interest goals; it provides an insight into the behaviour of economic agents when capital market disciplines are mute; and it illustrates some unintended consequences that can follow from market intervention. [source] The historical origins of US exchange market intervention policy,INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 2 2007Michael D. Bordo Abstract This paper examines the historical precedents of US exchange market intervention. Before 1934 we describe operations by the Second Bank of the United States, the US Treasury and the Federal Reserve. We then examine the operations of the Exchange Stabilization Fund, created in 1934 as a Treasury Department agency. Our study, based on unique, unpublished sources, analyses ESF dealings with the Banque de France and the Bank of England before and after the Tripartite Agreement of 1936. Finally, using unique data we discuss US efforts from 1961 through 1972 to defend the dollar's parity under the Bretton Woods System. Copyright © 2007 John Wiley & Sons, Ltd. [source] BANK CAPITAL REQUIREMENTS, BUSINESS CYCLE FLUCTUATIONS AND THE BASEL ACCORDS: A SYNTHESISJOURNAL OF ECONOMIC SURVEYS, Issue 5 2009Ines Drumond Abstract In order to survey the mechanisms through which the introduction of Basel II bank capital requirements is likely to accentuate the procyclical tendencies of banking, this paper brings together the theoretical literature on the bank capital channel of propagation of exogenous shocks and the literature on the regulatory framework of capital requirements under the Basel Accords. We conclude that the theoretical models that revisit the bank capital channel under the new accord generally support the Basel II procyclicality hypothesis and that the magnitude of the procyclical effects essentially depends on (i) the composition of banks' asset portfolios, (ii) the approach adopted by banks to compute their minimum capital requirements, (iii) the nature of the rating system used by banks, (iv) the view adopted concerning how credit risk evolves through time, (v) the capital buffers over the regulatory minimum held by the banking institutions, (vi) the improvements in credit risk management and (vii) the supervisor and market intervention under Basel II. The recent events and instability in financial markets all over the world have led the procyclicality issue to enter the agendas of several political international,fora,and some measures to mitigate procyclicality are being put forward. The bank capital channel literature should now play an important role in evaluating their effectiveness. [source] Policy dependency and reform: economic gains versus political painsAGRICULTURAL ECONOMICS, Issue 2-3 2004David R. Harvey Abstract Economic analysis condemns market intervention in favour of farmers as inefficient and ineffective, and therefore worthy of radical reform. Practical experience, however, indicates that such lessons are hard to learn and implement. Economic analysis tends to ignore the path dependencies generated by the policy evolution process. Without reform strategies that take full account of these dependencies, policy reform will continue to be reluctant, slow and frequently counter-productive. This paper reconsiders the evolution of farm policies and the economic assessment of their costs and benefits. In so doing, it re-phrases conventional economic arguments in terms which seem to accord better with sensible intuition, which may prove more accessible and credible to policymakers and advisors. The difficulties of reconciling economic efficiency with political acceptability are identified. The paper concludes with a substantial challenge to the agricultural economics profession. [source] Access to energy services by the poor in India: Current situation and need for alternative strategiesNATURAL RESOURCES FORUM, Issue 1 2006V. S. Ailawadi Abstract Poor and inadequate access to clean, reliable and affordable energy is now considered a major concern for sustainable development. India houses about a third of the world's population without access to electricity and about 40% of those without access to modern energy. This article considers India's challenge in this area, examines the energy access situation, and analyses measures pursued to improve it. The article argues that the current focus on rural electrification is unlikely to resolve the energy access problem, due to the low penetration of electricity in the energy mix of the poor. The article also argues that strategies based on energy market reform, promotion of renewable technologies and correct price signals are unlikely to succeed in changing the situation, as acceptance of this policy prescription is rather low. Instead, a bottom-up, holistic, long-term approach is suggested that integrates energy access with economic development, and relies on selective market intervention, local resources and local governance. [source] Devisenmarktoperationen und Informationspolitik der Europäischen ZentralbankPERSPEKTIVEN DER WIRTSCHAFTSPOLITIK, Issue 1 2002Michael Frenkel This paper analyzes the effectiveness of the foreign exchange market interventions of the European Central Bank (ECB) by studying the information policy of the ECB and examining whether the ECB relied on a specific transmission channel to influence exchange rates. Against the background of a discussion of the transmission channels through which foreign exchange market interventions of central banks may affect exchange rates, we are led to the conclusion that the information policy of the ECB was not in line with the assumptions underlying the transmission channels discussed in the theoretical literature. We argue that this finding could provide a possible explanation for the ineffectiveness of the ECB's foreign exchange market intervention in the fall of 2000. [source] The Overvaluation of Sterling Since 1996: How the Policy makers Responded and Why,THE ECONOMIC JOURNAL, Issue 512 2006David Cobham A large and sustained nominal appreciation in 1996-8 led to a serious and continuing overvaluation of sterling which has been associated with severe pressure on the manufacturing sector. The policy makers had difficulty in understanding past and forecasting future movements of sterling. They considered, but rejected, suggestions for foreign exchange market intervention and suggestions that interest rates should be set differently to reduce the overvaluation and relieve pressure on the tradable goods sector. One reason was that the exchange rate might react to such decisions in an erratic way. But if that is so the monetary framework needs to be revisited. [source] Discretionary government intervention and the mispricing of index futuresTHE JOURNAL OF FUTURES MARKETS, Issue 12 2003Paul Draper This article examines how and to what extent direct market intervention by the Hong Kong government in both the stock and futures markets affected the pricing relationship between the Hang Seng Index futures and the cash index during the period of the Asian financial crisis. The study avoids infrequent trading and nonexecution problems by using tradeable bid and offer quotes for the constituent stocks of the index. The results show that arbitrage efficiency was impeded during, and in the immediate aftermath of, the intervention. The findings suggest that discretionary government action introduces an additional risk factor for arbitrageurs that continues to disrupt normal market processes even after the government ceases to intervene. The continued disruption following the government's actions in the market also stems from a poorly developed stock loan market that impedes short selling, as well as a lack of liquidity in the market. © 2003 Wiley Periodicals, Inc. Jrl Fut Mark 23:1159,1189, 2003 [source] Non,Market Interventions in Water,Sharing:Case Studies from West Bengal, IndiaJOURNAL OF AGRARIAN CHANGE, Issue 4 2002Vikas Rawal This paper deals with two issues that are important areas of concern in the recent literature on water management in less,developed countries: forms of ownership of groundwater resources and alternatives to anarchy in the exploitation and use of groundwater. The emergence of a market for irrigation water has been argued to have the potential to provide irrigation water to large numbers of small cultivators in developing countries. The development of free markets for water, however, has also been shown to be associated with the emergence of ,water,lords' and with contracts for the purchase and sale of water that are biased against the poor. By contrast, this paper presents two examples of viable non,market interventions in water,sharing , regulation of water markets by village councils and cooperative tubewell groups , from villages in West Bengal, India. These interventions both improved the efficiency of water,use and represented relatively equitable arrangements for water,sharing. [source] Devisenmarktoperationen und Informationspolitik der Europäischen ZentralbankPERSPEKTIVEN DER WIRTSCHAFTSPOLITIK, Issue 1 2002Michael Frenkel This paper analyzes the effectiveness of the foreign exchange market interventions of the European Central Bank (ECB) by studying the information policy of the ECB and examining whether the ECB relied on a specific transmission channel to influence exchange rates. Against the background of a discussion of the transmission channels through which foreign exchange market interventions of central banks may affect exchange rates, we are led to the conclusion that the information policy of the ECB was not in line with the assumptions underlying the transmission channels discussed in the theoretical literature. We argue that this finding could provide a possible explanation for the ineffectiveness of the ECB's foreign exchange market intervention in the fall of 2000. [source] | |||||||||||||||||||||||||