The contribution of supply and demand shifts to earnings inequality in urban China

This paper examines the degree to which supply and demand shift across skill groups contributed to the earnings inequality increase in urban China from 1988 to 2002. Product demand shift contributed to an equalizing of earnings distribution in urban China from 1988 to 1995 by increasing the relative product for the low educated. However, it contributed to enlarging inequality from 1995 to 2002 by increasing the relative demand for the highly educated. Relative demand was continuously higher for workers in the coastal region and contributed to a raising of interregional inequality. Supply shift contributed essentially nothing or contributed only slightly to a reduction in inequality. Remaining factors, the largest disequalizer, may contain skill-biased technological and institutional changes, and unobserved supply shift effects due to increasing numbers of migrant workers.

Market Access and Intermediate Goods Trade

The role of importer access to the finished goods market in intermediate goods trade is examined by estimating the gravity-like equation derived from the NEG model. Importer access to demand for finished goods is calculated by using the estimates in the gravity equation for finished goods trade, and then intermediate goods trade is regressed on the importer access. Results indicate that imports of intermediate goods are sensitive not only to the magnitude of importer demand for finished goods but also to the demand of neighboring countries. Using results of the regression, the impact of US finished goods market expansion on intermediate goods trade in each country is simulated.

Chapter 1 Market Access and Intermediate Goods Trade

This paper examines a distinctive feature of intermediate goods trade which the traditional gravity equation fails to capture, i.e., intermediate goods trade is positively related not only to the importing country's demand for finished goods but also to its neighbors' demand for finished goods. We regress a gravity equation for finished goods trade in the first step. Then, introducing the importing country's access to the total demand for finished goods which is calculated by using the estimates in the first step, we regress our gravity equation for trade in intermediate goods. Our regression results confirm such a feature of intermediate goods trade. Using the results of the regression, we simulate how the rise of US consumers' demand for finished goods affects the total imports and exports of intermediate goods in each country.

Tariff reductions and labor demand elasticities : evidence from Chinese firm-level data

International production fragmentation has been a global trend for decades, becoming especially important in Asia where the manufacturing process is fragmented into stages and dispersed around the region. This paper examines the effects of input and output tariff reductions on labor demand elasticities at the firm level. For this purpose, we consider a simple heterogenous firm model in which firms are allowed to export their products and to use imported intermediate inputs. The model predicts that only productive firms can use imported intermediate inputs (outsourcing) and tend to have larger constant-output labor demand elasticities. Input tariff reductions would lower the factor shares of labor for these productive firms and raise conditional labor demand elasticities further. We test these empirical predictions, constructing Chinese firm-level panel data over the 2000--2006 period. Controlling for potential tariff endogeneity by instruments, our empirical studies generally support these predictions.

Energy efficiency standard and labeling program and consumer welfare : a case of the air conditioner market in China

Improving energy efficiency is an unarguable emergent issue in developing economies and an energy efficiency standard and labeling program is an ideal mechanism to achieve this target. However, there is concern regarding whether the consumers will choose the highly energy efficient appliances because of its high price in consequence of the high cost. This paper estimates how the consumer responds to introduction of the energy efficiency standard and labeling program in China. To quantify evaluation by consumers, we estimated their consumer surplus and the benefits of products based on the estimated parameters of demand function. We found the following points. First, evaluation of energy efficiency labeling by the consumer is not monotonically correlated with the number of grades. The highest efficiency label (Label 1) is not evaluated to be no less higher than labels 2 and 3, and is sometimes lower than the least energy efficient label (Label UI). This goes against the design of policy intervention. Second, several governmental policies affects in mixed directions: the subsidies for energy saving policies to the highest degree of the labels contribute to expanding consumer welfare as the program was designed. However, the replacement for new appliances policies decreased the welfare.

WiMAX,Technology and Market.

Wireless communication is the transfer of information from one place to another without using wires. From the earliest times, humans have felt the need to develop techniques of remote communication. From this need arose the smoke signals, communication by sun reflection in mirrors and so on. But today the telecommunications electronic devices such as telephone, television, radio or computer. Radio and television are used for one-way communication. Telephone and computer are used for two-way communication. In wireless networks there is almost unlimited mobility, we can access the network almost anywhere or anytime. In wired networks we have the restriction of using the services in fixed area services. The demand of the wireless is increasing very fast; everybody wants broadband services anywhere anytime. WiMAX (Worldwide Interoperability for Microwave Access) is a broadband wireless technology based on IEEE 802.16-2004 and IEEE 802.16e-2005 that appears to solve this demand. WIMAX is a system that allows wireless data transmission in areas of up to 48 km of radius. It is designed as a wireless alternative to ADSL and a way to connect nodes in wireless metropolitan areas network. Unlike wireless systems that are limited in most cases, about 100 meter, providing greater coverage and more bandwidth. WIMAX promises to achieve high data transmission rates over large areas with a great amount of users. This alternative to the networks of broadband access common as DSL o Wi-Fi, can give broadband access to places quickly to rural areas and developing areas around the world. This paper is a study of WIMAX technology and market situation. First, the paper is responsible for explaining the technical aspects of WIMAX. For this gives an overview of WIMAX standards, physical layer, MAC layer and WiMAX, Technology and Market Beijing University of Post and Telecommunications 2 WIMAX network architecture. Second, the paper address the issue of market in which provides an overview of development and deployment of WIMAX to end the future development trend of WIMAX is addressed. RESUMEN: Por comunicaciones inalámbricas se entiende la transferencia de información desde un lugar a otro sin la necesidad de un soporte físico como es por ejemplo el cable. Por lo que remontándose a los principios de la existencia del ser humano, nos damos cuenta de que el ser humano siempre ha sentido la necesidad de desarrollar técnicas para lograr comunicarse a distancia con sus semejantes. De dicha necesidad, surgieron técnicas tan ancestrales como puede ser la comunicación mediante señales de humo o por reflexión de los rayos solares en espejos entre otras. La curiosidad del ser humano y la necesidad de comunicarse a distancia fue la que llevó a Alexander Graham Bell a inventar el teléfono en 1876. La aparición de un dispositivo que permitía comunicarse a distancia permitiendo escuchar la voz de aquella persona con la que se quería hablar, supuso una revolución no solo en el panorama tecnológico, si no también en el panorama social. Pues a parte de permitir comunicaciones a larga distancia, solventó el problema de la comunicación en “tiempo real”. A raíz de este invento, la tecnología en materia de comunicación ha ido avanzando significativamente, más concretamente en lo referido a las comunicaciones inalámbricas. En 1973 se realizó la primera llamada desde un terminal móvil aunque no fue hasta 1983 cuando se empezó a comercializar dicho terminal, lo que supuso un cambio de hábitos y costumbres para la sociedad. Desde la aparición del primer móvil el crecimiento del mercado ha sido exponencial, lo que ha repercutido en una demanda impensable de nuevas aplicaciones integradas en dichos dispositivos móviles que satisfagan las necesidades que día a día autogenera la sociedad. Tras conseguir realizar llamadas a larga distancia de forma inalámbrica, el siguiente paso fue la creación de los SMS (Short Message System) lo que supuso una nueva revolución además de abaratar costes al usuario a la hora de comunicarse. Pero el gran reto para la industria de las comunicaciones móviles surgió con la aparición de internet. Todo el mundo sentía la necesidad de poder conectarse a esa gran base de datos que es internet en cualquier parte y en cualquier momento. Las primeras conexiones a internet desde dispositivos móviles se realizaron a través de la tecnología WAP (Wireless Application Protocol) hasta la aparición de la tecnología GPRS que permitía la conexión mediante protocolo TCP/IP. A partir de estas conexiones han surgido otras tecnologías, como EDGE, HSDPA, etc., que permitían y permiten la conexión a internet desde dispositivos móviles. Hoy en día la demanda de servicios de red inalámbrica crece de forma rápida y exponencial, todo el mundo quiere servicios de banda ancha en cualquier lugar y en cualquier momento. En este documento se analiza la tecnología WiMAX ( Worldwide Interoperability for Microwave Access) que es una tecnología de banda ancha basada en el estándar IEEE 802.16 creada para brindar servicios a la demanda emergente en la banda ancha desde un punto de vista tecnológico, donde se da una visión de la parte técnica de la tecnología; y desde el punto de vista del mercado, donde se analiza el despliegue y desarrollo de la tecnología desde el punto de vista de negocio. WiMAX es una tecnología que permite la transmisión inalámbrica de datos en áreas de hasta 48Km de radio y que está diseñada como alternativa inalámbrica para ADSL y para conectar nodos de red inalámbrica en áreas metropolitanas. A diferencia de los sistemas inalámbricos existentes que están limitados en su mayoría a unos cientos de metros, WiMAX ofrece una mayor cobertura y un mayor ancho de banda que permita dar soporte a nuevas aplicaciones, además de alcanzar altas tasas de transmisión de datos en grandes áreas con una gran cantidad de usuarios. Se trata de una alternativa a las redes de acceso de banda ancha como DSL o Wi-Fi, que puede dar acceso de banda ancha a lugares tales como zonas rurales o zonas en vías de desarrollo por todo el mundo con rapidez. Existen dos tecnologías de WiMAX, WiMAX fijo (basado en el estándar IEEE 802.16d-2004) y WiMAX móvil (basado en el estándar IEEE 802.16e-2005). La tecnología fija está diseñada para comunicaciones punto a multipunto, mientras que la fija lo está para comunicaciones multipunto a multipunto. WiMAX móvil se basa en la tecnología OFDM que ofrece ventajas en términos de latencia, eficiencia en el uso del espectro y soporte avanzado para antenas. La modulación OFDM es muy robusta frente al multitrayecto, que es muy habitual en los canales de radiodifusión, frente al desvanecimiento debido a las condiciones meteorológicas y frente a las interferencias de RF. Una vez creada la tecnología WiMAX, poseedora de las características idóneas para solventar la demanda del mercado, ha de darse el siguiente paso, hay que convencer a la industria de las telecomunicaciones de que dicha tecnología realmente es la solución para que apoyen su implantación en el mercado de la banda ancha para las redes inalámbricas. Es aquí donde entra en juego el estudio del mercado que se realiza en este documento. WiMAX se enfrenta a un mercado exigente en el que a parte de tener que dar soporte a la demanda técnica, ha de ofrecer una rentabilidad económica a la industria de las comunicaciones móviles y más concretamente a las operadoras móviles que son quienes dentro del sector de las telecomunicaciones finalmente han de confiar en la tecnología para dar soporte a sus usuarios ya que estos al fin y al cabo lo único que quieren es que su dispositivo móvil satisfaga sus necesidades independientemente de la tecnología que utilicen para tener acceso a la red inalámbrica de banda ancha. Quizás el mayor problema al que se ha enfrentado WiMAX haya sido la situación económica en la que se encuentra el mundo. WiMAX a comenzado su andadura en uno de los peores momentos, pero aun así se presenta como una tecnología capaz de ayudar al mundo a salir hacia delante en estos tiempos tan duros. Finalmente se analiza uno de los debates existentes hoy en día en el sector de las comunicaciones móviles, WiMAX vs. LTE. Como se puede observar en el documento realmente una tecnología no saldrá victoriosa frente a la otra, si no que ambas tecnologías podrán coexistir y trabajar de forma conjunta.

Impact assessment of an integrated approach for thermal power generation plants asset management in the current energy market

El sector energético, en España en particular, y de forma similar en los principales países de Europa, cuenta con una significativa sobrecapacidad de generación, debido al rápido y significativo crecimiento de las energías renovables en los últimos diez años y la reducción de la demanda energética, como consecuencia de la crisis económica. Esta situación ha hecho que las centrales térmicas de generación de electricidad, y en concreto los ciclos combinados de gas, operen con un factor de utilización extremadamente bajo, del orden del 10%. Además de la reducción de ingresos, esto supone para las plantas trabajar continuamente fuera del punto de diseño, provocando una significativa pérdida de rendimiento y mayores costes de explotación. En este escenario, cualquier contribución que ayude a mejorar la eficiencia y la condición de los equipos, es positivamente considerada. La gestión de activos está ganando relevancia como un proceso multidisciplinar e integrado, tal y como refleja la reciente publicación de las normas ISO 55000:2014. Como proceso global e integrado, la gestión de activos requiere el manejo de diversos procesos y grandes volúmenes de información, incluso en tiempo real. Para ello es necesario utilizar tecnologías de la información y aplicaciones de software. Esta tesis desarrolla un concepto integrado de gestión de activos (Integrated Plant Management – IPM) aplicado a centrales de ciclo combinado y una metodología para estimar el beneficio aportado por el mismo. Debido a las incertidumbres asociadas a la estimación del beneficio, se ha optado por un análisis probabilístico coste-beneficio. Así mismo, el análisis cuantitativo se ha completado con una validación cualitativa del beneficio aportado por las tecnologías incorporadas al concepto de gestión integrada de activos, mediante una entrevista realizada a expertos del sector de generación de energía. Los resultados del análisis coste-beneficio son positivos, incluso en el desfavorable escenario con un factor de utilización de sólo el 10% y muy prometedores para factores de utilización por encima del 30%. ABSTRACT The energy sector particularly in Spain, and in a similar way in Europe, has a significant overcapacity due to the big growth of the renewable energies in the last ten years, and it is seriously affected by the demand decrease due to the economic crisis. That situation has forced the thermal plants and in particular, the combined cycles to operate with extremely low annual average capacity factors, very close to 10%. Apart from the incomes reduction, working in out-of-design conditions, means getting a worse performance and higher costs than expected. In this scenario, anything that can be done to improve the efficiency and the equipment condition is positively received. Asset Management, as a multidisciplinary and integrated process, is gaining prominence, reflected in the recent publication of the ISO 55000 series in 2014. Dealing Asset Management as a global, integrated process needs to manage several processes and significant volumes of information, also in real time, that requires information technologies and software applications to support it. This thesis proposes an integrated asset management concept (Integrated Plant Management-IPM) applied to combined cycle power plants and develops a methodology to assess the benefit that it can provide. Due to the difficulties in getting deterministic benefit estimation, a statistical approach has been adopted for the cot-benefit analysis. As well, the quantitative analysis has been completed with a qualitative validation of the technologies included in the IPM and their contribution to key power plant challenges by power generation sector experts. The cost- benefit analysis provides positive results even in the negative scenario of annual average capacity factor close to 10% and is promising for capacity factors over 30%.

What role does climate change play in agricultural market uncertainty? An integrated assessment taking into account market-driven adjustments

Recent studies point to climate change being one of the long-term drivers of agricultural market uncertainty. To advance in the understanding of the influence of climate change on future agricultural market developments, we compare a reference scenario for 2030 with alternative simulation scenarios that differ regarding: (1) emission scenarios; (2) climate projections; and (3) the consideration of carbon fertilization effects. For each simulation scenario, the CAPRI model provides global and EU-wide impacts of climate change on agricultural markets. Results show that climate change would considerably affect agrifood markets up to 2030. Nevertheless, market-driven adaptation strategies (production intensification, trade adjustments) would soften the impact of yield shocks on supply and demand. As a result, regional changes in production would be lower than foreseen by other studies focused on supply effects.

Reviewing the EU's market abuse rules. ECMI Policy Brief No. 19, 27 February 2012

Updated May 2012 and reposted: In 2011, an EU legislative package on market abuse was proposed, which comprises two sets of documents: 1) a draft Regulation that will largely replace the existing Market Abuse Directive (MAD) and the level 2 measures; and a new Directive dealing with criminal sanctions. Market abuse rules are needed to ensure market integrity and investor confidence, and to allow companies to raise capital and contribute to economic growth, thereby increasing employment. This ECMI Policy Brief argues that rules on market abuse should be technically well designed, proportionate and crystal clear, but also subject to more efficient and harmonised supervision than before. The paper focuses particularly on the draft Regulation. The use of a regulation is welcome, as (in integrated financial markets) abuses should be regulated in a harmonised manner by member states, which has not always been the case, as the 2007 report from the European Securities Markets Expert (ESME) Group extensively demonstrated. At the same time, this paper criticises some of the provisions contained in the draft Regulation, notably the new notion of inside information not to abuse (Art. 6(e)) and the unchanged definition of inside information for listed companies to disclose, and it proposes new definitions. The extension of disclosure obligations to issuers whose shares are traded on demand only on ‘listing’ multilateral trading facilities is also widely criticised. Other comments deal with the proposed rules on managers’ transactions, insiders’ lists and accepted market practices.

Between energy security and energy market integration. Guidelines for the future development of the EU’s external energy policy in Europe’s neighbourhood. OSW Report, June 2011

For many years the European Union has been improving the efficient use of energy resources and yet the demand for energy in the EU continues to increase. When Europe belonged to one of the world’s key energy markets with relatively easy access to energy resources, growing energy needs were not seen as a source of concern. Today, however, as the competition for energy resources is intensifying and the global position of the EU energy market is being challenged by growing economies in the developing countries, above all China and India, the EU needs to adopt bold policies to guarantee the sustainable supply of energy. This report argues the EU needs to develop a fully-fledged external energy policy; i.e. a common, coherent, strategic approach that build bridges between the interests and needs of the EU integrated energy market on the one hand and supplier countries on the other. The EU’s external energy policy has two main objectives. The first one is to ensure a sustainable, stable and cost-effective energy supply. The second is to promote energy market integration and regulatory convergence with neighbouring countries (often but not always this supports the achievement of the first objective). However, in order to improve its effectiveness, the EU’s external energy policy needs to be seen in a broader economic and political context. Any progress in energy cooperation with third countries is contingent upon the EU’s general stance and offer to those countries.

A Contribution to The Study of Global Competition for Talent: the determinants of student mobility and its consequences for the internationalization of the labor market. Bruges European Economic Policy (BEEP) Briefing 27/2013

In a globalized economy the skills of the workforce are a key determinant of the competitiveness of a country. One of the goals of Higher Education is precisely to develop the students’ skills in order to allow them to match the increasing demand for highly qualified workers while it is simultaneously the best period of life to acquire multicultural skills. For this reason, the European Union has fostered student mobility through several programs: the Erasmus program and the Bologna process are the best known among them. Although student mobility is a growing phenomenon, publications and research on the subject remain relatively scarce. This paper aims to contribute to that literature through an empirical analysis which exploits a questionnaire submitted to university alumni and focuses on two research questions: what drives studies abroad and what drives expatriation of graduates. Our empirical analysis first shows that exposure to international experiences before entering tertiary education and family background are the main factors influencing student mobility. A second conclusion is that studying abroad increases the international mobility on the labor market. Both confirm previous studies. Moreover, by making a distinction between participating in the Erasmus program and in other exchange programs or internships abroad, we found that the Erasmus program and the other programs or internships have an equivalent influence on the international mobility on the labor market: they increase by 9 to 12.5 percentage points a student’s chance to be mobile on the international labor market. This result shows the legitimacy of the Erasmus program, but it also reveals the important impact of other forms of experience abroad. It provides support for policy makers to encourage mobility programs, in order to foster integration of the European labor market.

Supply and Demand Side Limitations Affecting the Structure of Agriculture and the Rural Economy. Factor Markets Working Paper No. 21, February 2012

The paper criticises the neo-classical assumptions of perfect factor markets and of complete information, which constitute central elements in labour market theory. Based on literature review and on economic reports from transition economies, as well as developing countries and more advanced economies, this deliverable focuses on the structural impediments and imperfections which often characterise rural labour markets and which may prevent an efficient allocation of labour. According to empirical studies, transactions costs and rigidities hinder the well-functioning of labour markets and constrain labour adjustments. The paper attempts to classify the various limitations of rural labour markets from both supply and demand side, although the distinction is not always clear-cut as some problems occur on both sides. The identification of these issues is extremely important as it allows us to highlight the inefficiencies and the failures in labour markets and to understand their impact on labour allocation. In this context, market intervention is desirable and the paper provides particular support for rural development policies such as investments in human capital. Lastly, labour institutions can play a key role in promoting the well functioning of labour markets, thus it is fundamental that they are well in place.

Regional Wage and Employment Responses to Market Potential in the EU. Bruges European Economic Research (BEER) Papers 3/November 2005

Recent theoretical work on economic geography emphasizes the interplay of transport costs and plant-level increasing returns. In these models, the spatial distribution of demand is a key determinant of economic outcomes. In one strand, it is argued that higher demand gives rise to a more than proportionate increase in production, a result known as the home market effect. Another strand emphasizes the effects of market sizes on factor prices. We highlight the theoretical connection between these two strands. Using data on 57 European regions, we show how wages and employment respond to differentials in what we call real market potential, a discounted sum of demands derived from the theory.

The Theoretical Framework and Methodology to Estimate the Farm Labour and Other Factor-Derived Demand and Output Supply Systems. Factor Markets Working Document No. 44, May 2013

This paper provides a conceptual framework for the estimation of the farm labour and other factor-derived demand and output supply systems. In order to analyse the drivers of labour demand in agriculture and account for the impact of policies on those decisions, it is necessary to acknowledge the interaction between the different factor markets. For this purpose, we present a review of the theoretical background to primal and dual representations of production and some empirical literature that has made use of derived demand systems. The main focus of the empirical work is to study the effect of market distortions in one market, through inefficient pricing, on the demand for other inputs. Therefore, own-price and cross-price elasticities of demand become key variables in the analysis. The dual cost function is selected as the most appropriate approach, where input prices are assumed to be exogenous. A commonly employed specification – and one that is particularly convenient due to its flexible form – is the translog cost function. The analysis consists of estimating the system of cost-share equations, in order to obtain the derived demand functions for inputs. Thus, the elasticities of factor substitution can be used to examine the complementarity/substitutability between inputs.

Carbon Market Opportunities in Southern Mediterranean Countries. MEDPRO Technical Report No. 8/March 2012

To date, Southern Mediterranean countries have hosted a limited number of projects under the Clean Development Mechanism (CDM). There are three challenges to the participation of middleincome countries in future carbon markets: the limited size of future demand for offsets or credits; restrictions on the use of CDM credits in Phase III of the EU Emissions Trading Scheme; and the lack of prompt preparation for the start of new market-based mechanisms. This study examines existing and emerging activities in Southern Mediterranean countries that could fit into new market based mechanisms. It explores options for the evolution of mechanisms and discusses the merits of post-2012 carbon funds in bridging the gap between the end of the first commitment period of the Kyoto Protocol and the entry into force of a new international agreement.