{"title":"The Impact of Pecuniary Costs on Commuting Flows","authors":"D. McArthur, Gisle Kleppe, I. Thorsen, J. Ubøe","doi":"10.2139/ssrn.1612167","DOIUrl":"https://doi.org/10.2139/ssrn.1612167","url":null,"abstract":"In western Norway, fjords cause disconnections in the road network, necessitating the use of ferries. In several cases, ferries have been replaced by roads, often part-financed by tolls. We use data on commuting from a region with a high number of ferries, tunnels and bridges. Using a doubly-constrained gravity-based model specification, we focus on how commuting responds to varying tolls and ferry prices. Focus is placed on the role played by tolls on infrastructure in inhibiting spatial interaction. We show there is considerable latent demand, and suggest that these tolls contradict the aim of greater territorial cohesion.","PeriodicalId":133518,"journal":{"name":"Norwegian School of Economics","volume":"119 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116614371","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Spatial Transferability of Parameters in a Gravity Model of Commuting Flows","authors":"D. McArthur, Gisle Kleppe, I. Thorsen, J. Ubøe","doi":"10.2139/ssrn.1612164","DOIUrl":"https://doi.org/10.2139/ssrn.1612164","url":null,"abstract":"This paper studies whether gravity model parameters estimated in one geographic area can give reasonable predictions of commuting flows in another. To do this, three sets of parameters are estimated for geographically proximate yet separate regions in south-west Norway. All possible combinations of data and parameters are considered, giving a total of nine cases. Of particular importance is the distinction between statistical equality of parameters and `practical' equality i.e. are the differences in predictions big enough to matter. A new type test best on the Standardised Root Mean Square Error (SRMSE) and Monte Carlo simulation is proposed and utilised.","PeriodicalId":133518,"journal":{"name":"Norwegian School of Economics","volume":"55 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125019509","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Estimating Value Creation in the Public University: A Comparison of Deterministic and Stochastic Frontiers","authors":"Teodoro Reyes-Fong, Francisco M. Somohano","doi":"10.2139/ssrn.2866010","DOIUrl":"https://doi.org/10.2139/ssrn.2866010","url":null,"abstract":"Public value creation philosophy is based on the idea that public administration should guide its performance accordingly with the changing times and reconcile effectively its objectives with the appropriate use of its resources. However, in public administration, particularly in organizations characterized by heterogeneity of the mandated functions, this sort of analysis is difficult. In this work, we estimate changes in the value creation of a Spanish public university, specifically the University of Cantabria, over the period 2005-2007. We analyze 31 of its departments with deterministic and stochastic frontiers using panel data. The results reveal information related to productivity and efficiency change through time, as well as their possible causes for each of the evaluated Decision Making Units (DMUs).","PeriodicalId":133518,"journal":{"name":"Norwegian School of Economics","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-12-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121204457","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Human Capital, Multiple Income Risk and Social Insurance","authors":"Dirk Schindler","doi":"10.2139/ssrn.1271971","DOIUrl":"https://doi.org/10.2139/ssrn.1271971","url":null,"abstract":"We set up an OLG-model, where households both choose human capital investment and decide on investing their endogenous savings in a portfolio of riskless and risky assets, exposing them to (aggregate) wage and capital risks due to technological shocks. We derive the optimal public policy mix of taxation and education policy. We show that risks can be efficiently diversified between private and public consumption. This results hinges on that the government can apply a wide set of instruments, including differentiated wage and capital taxation. We also show that for sufficient risk aversion the (Northern) European way of relying on progressive wage taxation and granting education subsidies is an optimal response to wage and capital risks.","PeriodicalId":133518,"journal":{"name":"Norwegian School of Economics","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-09-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130411674","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Matching Own Prices, Rivals' Prices, or Both","authors":"M. Hviid, G. Shaffer","doi":"10.2139/ssrn.1210599","DOIUrl":"https://doi.org/10.2139/ssrn.1210599","url":null,"abstract":"Many retailers promise that they will not be undersold by rivals (price-matching guarantees) and extend their promise to include their own future prices (most-favored-customer clauses). This is puzzling because the extant literature has shown that each promise independently has the potential to facilitate supracompetitive prices, and so one might think that the two promises are substitutes. In this paper, we consider why a firm might make both promises in the same guarantee, and show that price-matching guarantees and most-favored-customer clauses complement each other and can lead to higher prices than either one could have facilitated by itself.","PeriodicalId":133518,"journal":{"name":"Norwegian School of Economics","volume":"53 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122270552","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Technological Change and the Tragedy of the Commons: The Lofoten Fishery Over Hundred and Thirty Years.","authors":"R. Hannesson, K. Salvanes, D. Squires","doi":"10.2139/SSRN.1550841","DOIUrl":"https://doi.org/10.2139/SSRN.1550841","url":null,"abstract":"Why did the Lofoten cod fishery in Norway – a fishery on one of the world’s richest spawning grounds remain less productive than alternative industries until the mid-1960s, despite important modernization of the fleet and fishing gear, improvements in technology and institutional change? We analyze the effect of technological change on labor and total factor productivity as well as exit and entry patterns using detailed data for 130 years. Our findings support the important role of natural resources in productivity and improvements in welfare in natural resource-based industries. The total factor productivity has risen faster than labor productivity in the fishery, indicating that the considerable technological progress in this industry has to some extent been neutralized by the decline in the fish stock. Open access to the fish resource most probably led to this situation. * We thank Ola Grytten, The Norwegian School of Economics and Business Administration, for access to data on wages for the manufacturing and agricultural industry in Norway.","PeriodicalId":133518,"journal":{"name":"Norwegian School of Economics","volume":"366 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-04-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126703909","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Strategic Insider Trading Equilibrium: A Forward Integration Approach","authors":"K. Aase, Terje Bjuland, B. Oksendal","doi":"10.2139/ssrn.1058441","DOIUrl":"https://doi.org/10.2139/ssrn.1058441","url":null,"abstract":"The continuous-time version of Kyle’s (1985) model of asset pricing with asymmetric information is studied, and generalized in various directions, i.e., by allowing time-varying noise trading, and by allowing the orders of the noise traders to be correlated with the insider’s signal. From rather simple assumptions we are able to derive the optimal trade for an insider; the trading intensity satisfies a deterministic integral equation, given perfect inside information. We use a new technique called forward integration in order to find the optimal trading strategy. This is an extension of the stochastic integral which takes account of the informational asymmetry inherent in this problem. The market makers’ price response is found by the use of filtering theory. The novelty is our approach, which could be extended in scope.","PeriodicalId":133518,"journal":{"name":"Norwegian School of Economics","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131054829","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Revelation of Preferences in Patient List Data","authors":"J. Ubøe, J. Lillestøl","doi":"10.2139/ssrn.1021178","DOIUrl":"https://doi.org/10.2139/ssrn.1021178","url":null,"abstract":"In this paper we will show how the patient list model in Uboe & Lillestol (2007) can be used to infer strength of preferences from patient list data. We prove that we can construct unique sets of preferences that replicates patient list data, and we also show how to approach cases where we only have partial information of the system. As an illustration we apply the new theory to some patient list data from the Norwegian patient list system in general practice.","PeriodicalId":133518,"journal":{"name":"Norwegian School of Economics","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114966723","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Grégory Corcos, Massimo Del Gatto, Giordano Mion, G. Ottaviano
{"title":"Productivity and Firm Selection: Intra- vs International Trade","authors":"Grégory Corcos, Massimo Del Gatto, Giordano Mion, G. Ottaviano","doi":"10.2139/ssrn.1012273","DOIUrl":"https://doi.org/10.2139/ssrn.1012273","url":null,"abstract":"Recent theoretical models predict gains from international trade coming from intra-industry reallocations, due to a firm selection effect. In this paper we answer two related questions. First, what is the magnitude of this selection effect, and how does it compare to that of intra-national trade? Second, would the removal of 'behind-the-border' trade frictions between integrated EU countries lead to large productivity gains? To answer these questions, we extend and calibrate the Melitz and Ottaviano (2007) model on productivity and trade data for European economies in 2000, and simulate counterfactual trade liberalization scenarios. We consider 11 EU countries and a total of 31 economies, including 21 French regions. Our first result is that, in the French case, international trade has a sizeable impact on aggregate productivity, but smaller than that of intra-national trade. Second, substantial productivity gains (around 20%) can be expected from 'behind-the-border' integration. In both experiments, we predict the corresponding variations in average prices, markups, quantities and profits. We show that the model fits sales and exports data reasonably well, and we perform a number of robustness checks. We also suggest some explanations for the substantial cross-economy and cross-industry variations in our estimates of productivity gains, highlighting the importance of accessibility and competitiveness.","PeriodicalId":133518,"journal":{"name":"Norwegian School of Economics","volume":"56 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126458030","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Exclusionary Discounts","authors":"J. Ordover, G. Shaffer","doi":"10.2139/ssrn.995426","DOIUrl":"https://doi.org/10.2139/ssrn.995426","url":null,"abstract":"We consider a two-period model with two sellers and one buyer in which the efficient outcome calls for the buyer to purchase one unit from each seller in each period. We show that when the buyer's valuations between periods are linked by switching costs and at least one seller is financially constrained, there are plausible conditions under which exclusion arises as the unique equilibrium outcome (the buyer buys both units from the same seller). The exclusionary equilibria are supported by price-quantity offers in which the excluding seller offers its second unit at a price that is below its marginal cost of production. In some cases, the price of this second unit is negative. Our findings contribute to the literatures on exclusive dealing, bundling, and loyalty rebates/payments.","PeriodicalId":133518,"journal":{"name":"Norwegian School of Economics","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132650476","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}