The Minimum Safety Standard, Consumers’ Information, and Competition, February 2007

This paper explores the effects of a standard influencing care choice. Firm(s) may increase the probability of offering safe products by incurring a cost. Under duopoly, they compete either in prices or in quantities. Under perfect information about safety for consumers, the selected standard that corrects a safety underinvestment is always compatible with competition. Safety over investment only emerges under competition in quantities and relatively low values of the cost. Under imperfect information about safety for consumers, the standard leads to a monopoly situation. However, for relatively large values of the cost, a standard cannot impede the market failure coming from the lack of information.

Interest rate restrictions in a natural experiment: loan allocation and the change in the usury laws in 1714

This article studies the effects of interest rate restrictions on loan allocation. The British governmenttightened the usury laws in 1714, reducing the maximum permissible interest rate from 6% to5%. A sample of individual loan transactions reveals that average loan size and minimum loan sizeincreased strongly, while access to credit worsened for those with little social capital. Collateralisedcredits, which had accounted for a declining share of total lending, returned to their former role ofprominence. Our results suggest that the usury laws distorted credit markets significantly; we findno evidence that they offered a form of Pareto-improving social insurance.

The second law of thermodynamics and the global climate system : A review of the maximum entropy production principle

The long-term mean properties of the global climate system and those of turbulent fluid systems are reviewed from a thermodynamic viewpoint. Two general expressions are derived for a rate of entropy production due to thermal and viscous dissipation (turbulent dissipation) in a fluid system. It is shown with these expressions that maximum entropy production in the Earth s climate system suggested by Paltridge, as well as maximum transport properties of heat or momentum in a turbulent system suggested by Malkus and Busse, correspond to a state in which the rate of entropy production due to the turbulent dissipation is at a maximum. Entropy production due to absorption of solar radiation in the climate system is found to be irrelevant to the maximized properties associated with turbulence. The hypothesis of maximum entropy production also seems to be applicable to the planetary atmospheres of Mars and Titan and perhaps to mantle convection. Lorenz s conjecture on maximum generation of available potential energy is shown to be akin to this hypothesis with a few minor approximations. A possible mechanism by which turbulent fluid systems adjust themselves to the states of maximum entropy production is presented as a selffeedback mechanism for the generation of available potential energy. These results tend to support the hypothesis of maximum entropy production that underlies a wide variety of nonlinear fluid systems, including our planet as well as other planets and stars

Looking for orders of magnitude : five essays in trade and the environment and economic geography

General Summary Although the chapters of this thesis address a variety of issues, the principal aim is common: test economic ideas in an international economic context. The intention has been to supply empirical findings using the largest suitable data sets and making use of the most appropriate empirical techniques. This thesis can roughly be divided into two parts: the first one, corresponding to the first two chapters, investigates the link between trade and the environment, the second one, the last three chapters, is related to economic geography issues. Environmental problems are omnipresent in the daily press nowadays and one of the arguments put forward is that globalisation causes severe environmental problems through the reallocation of investments and production to countries with less stringent environmental regulations. A measure of the amplitude of this undesirable effect is provided in the first part. The third and the fourth chapters explore the productivity effects of agglomeration. The computed spillover effects between different sectors indicate how cluster-formation might be productivity enhancing. The last chapter is not about how to better understand the world but how to measure it and it was just a great pleasure to work on it. "The Economist" writes every week about the impressive population and economic growth observed in China and India, and everybody agrees that the world's center of gravity has shifted. But by how much and how fast did it shift? An answer is given in the last part, which proposes a global measure for the location of world production and allows to visualize our results in Google Earth. A short summary of each of the five chapters is provided below. The first chapter, entitled "Unraveling the World-Wide Pollution-Haven Effect" investigates the relative strength of the pollution haven effect (PH, comparative advantage in dirty products due to differences in environmental regulation) and the factor endowment effect (FE, comparative advantage in dirty, capital intensive products due to differences in endowments). We compute the pollution content of imports using the IPPS coefficients (for three pollutants, namely biological oxygen demand, sulphur dioxide and toxic pollution intensity for all manufacturing sectors) provided by the World Bank and use a gravity-type framework to isolate the two above mentioned effects. Our study covers 48 countries that can be classified into 29 Southern and 19 Northern countries and uses the lead content of gasoline as proxy for environmental stringency. For North-South trade we find significant PH and FE effects going in the expected, opposite directions and being of similar magnitude. However, when looking at world trade, the effects become very small because of the high North-North trade share, where we have no a priori expectations about the signs of these effects. Therefore popular fears about the trade effects of differences in environmental regulations might by exaggerated. The second chapter is entitled "Is trade bad for the Environment? Decomposing worldwide SO2 emissions, 1990-2000". First we construct a novel and large database containing reasonable estimates of SO2 emission intensities per unit labor that vary across countries, periods and manufacturing sectors. Then we use these original data (covering 31 developed and 31 developing countries) to decompose the worldwide SO2 emissions into the three well known dynamic effects (scale, technique and composition effect). We find that the positive scale (+9,5%) and the negative technique (-12.5%) effect are the main driving forces of emission changes. Composition effects between countries and sectors are smaller, both negative and of similar magnitude (-3.5% each). Given that trade matters via the composition effects this means that trade reduces total emissions. We next construct, in a first experiment, a hypothetical world where no trade happens, i.e. each country produces its imports at home and does no longer produce its exports. The difference between the actual and this no-trade world allows us (under the omission of price effects) to compute a static first-order trade effect. The latter now increases total world emissions because it allows, on average, dirty countries to specialize in dirty products. However, this effect is smaller (3.5%) in 2000 than in 1990 (10%), in line with the negative dynamic composition effect identified in the previous exercise. We then propose a second experiment, comparing effective emissions with the maximum or minimum possible level of SO2 emissions. These hypothetical levels of emissions are obtained by reallocating labour accordingly across sectors within each country (under the country-employment and the world industry-production constraints). Using linear programming techniques, we show that emissions are reduced by 90% with respect to the worst case, but that they could still be reduced further by another 80% if emissions were to be minimized. The findings from this chapter go together with those from chapter one in the sense that trade-induced composition effect do not seem to be the main source of pollution, at least in the recent past. Going now to the economic geography part of this thesis, the third chapter, entitled "A Dynamic Model with Sectoral Agglomeration Effects" consists of a short note that derives the theoretical model estimated in the fourth chapter. The derivation is directly based on the multi-regional framework by Ciccone (2002) but extends it in order to include sectoral disaggregation and a temporal dimension. This allows us formally to write present productivity as a function of past productivity and other contemporaneous and past control variables. The fourth chapter entitled "Sectoral Agglomeration Effects in a Panel of European Regions" takes the final equation derived in chapter three to the data. We investigate the empirical link between density and labour productivity based on regional data (245 NUTS-2 regions over the period 1980-2003). Using dynamic panel techniques allows us to control for the possible endogeneity of density and for region specific effects. We find a positive long run elasticity of density with respect to labour productivity of about 13%. When using data at the sectoral level it seems that positive cross-sector and negative own-sector externalities are present in manufacturing while financial services display strong positive own-sector effects. The fifth and last chapter entitled "Is the World's Economic Center of Gravity Already in Asia?" computes the world economic, demographic and geographic center of gravity for 1975-2004 and compares them. Based on data for the largest cities in the world and using the physical concept of center of mass, we find that the world's economic center of gravity is still located in Europe, even though there is a clear shift towards Asia. To sum up, this thesis makes three main contributions. First, it provides new estimates of orders of magnitudes for the role of trade in the globalisation and environment debate. Second, it computes reliable and disaggregated elasticities for the effect of density on labour productivity in European regions. Third, it allows us, in a geometrically rigorous way, to track the path of the world's economic center of gravity.

Oil Transportation in the Gulf of Finland in 2020 and 2030

This study is part of the Minimizing risks of maritime oil transport by holistic safety strategies (MIMIC) project. The purpose of this study is to provide a current state analysis of oil transportation volumes in the Baltic Sea and to create scenarios for oil transportation in the Gulf of Finland for the years 2020 and 2030. Future scenarios and information about oil transportation will be utilized in the modelling of oil transportation risks, which will be carried out as part of the MIMIC project. Approximately 290 million tons of oil and oil products were transported in the Baltic Sea in 2009, of which 55% (160 million tons) via the Gulf of Finland. Oil transportation volumes in the Gulf of Finland have increased from 40 million to almost 160 million tonnes over the last ten years. In Russia and Estonia, oil transportation mainly consists of export transports of the Russian oil industry. In Finnish ports in the Gulf of Finland, the majority of oil traffic is concentrated to the port of Sköldvik, while the remainder mainly consists of different oil products for domestic use. Transit transports to/from Russia make up small volumes of oil transportation. The largest oil ports in the Gulf of Finland are Primorsk, Tallinn, St. Petersburg and Sköldvik. The basis for the scenarios for the years 2020 and 2030 is formed by national energy strategies, the EU`s climate and energy strategies as well other energy and transportation forecasts for the years 2020 and 2030. Three alternative scenarios were produced for both 2020 and 2030. The oil volumes are based on the expert estimates of nine specialists. The specialists gave three volumes for each scenario: the expected oil transport volumes, and the minimum and maximum volumes. Variations in the volumes between the scenarios are not large, but each scenario tends to have rather a large difference between the figures for minimum and maximum volumes. This variation between the minimum and maximum volumes ranges around 30 to 40 million tonnes depending on the scenario. On the basis of this study, no a dramatic increase in oil transportation volumes in the Gulf of Finland is to be expected. Most of the scenarios only forecasted a moderate growth in maritime oil transportation compared to the current levels. The effects of the European energy policy favouring renewable energy sources can be seen in the 2030 scenarios, in which the transported oil volumes are smaller than in the 2020 scenarios. In the Slow development 2020 scenario, oil transport volumes for 2020 are expected to be 170.6 Mt (million tonnes), in the Average development 2020 187.1 Mt and in the Strong development 2020 201.5 Mt. The corresponding oil volumes for the 2030 scenarios were 165 Mt for the Stagnating development 2030 scenario, 177.5 Mt for the Towards a greener society 2030 scenario and 169.5 Mt in the Decarbonising society 2030 scenario.

Unique and unifying themes in the mechanisms regulating the expression of the arabidopsis thaliana PR-1 and Solanum tuberosum PR-10a inducible defense genes

Arabidopsis is a model plant used to study disease resistance; Solanum tuberosum or potato is a crop species. Both plants possess inducible defense mechanisms that are deployed upon recognition of pathogen invasion. Transcriptional reprogramming is crucial to the activation of defense responses. The Pathogenesis-Related (PR) genes are activated in these defense programs. Expression of Arabidopsis PR-l and potato PR-10a serve as markers for the deployment of defense responses in these plants. PR-l expression indicates induction of systemic acquired resistance (SAR). Activation of SAR requires accumulation of salicylic acid (SA), in addition to the interaction of the non-expressor of pathogenesis-related genes I (NPRI), with the TGA transcription factors. The PR-10a is activated in response to pathogen invasion, wounding and elicitor treatment. PR-10a induction requires recruitment of the Whirly I (Whyl) activator to the promoter. This locus is also negatively regulated by the silencer element binding factor (SEBF). We established that both the PR-l and PR-10a are occupied by repressors under non-inducing conditions. TGA2 was found to be a constitutive resident and repressor of PR-l, which mediates repression by forming an oligomeric complex on the promoter. The DNA-binding activity of this oligomer required the TGA2 N-terminus (NT). Under resting conditions we determined that the PR-10a is bound by a repressosome containing SEBF and curiously the activator Pto interacting protein 4 (Pti4). In the context of this repressosome, SEBF is responsible for PR-10a binding, yet rWe also showed that PR-l and PR-10a are activated by different means. In PR-l activation the NPRI NT domain alleviates TGA2-mediated repression by interacting with the TGA2 NT. TGA2 remains at the PR-l but adopts a dimeric conformation and forms an enhanceosome with NPRl. In contrast, the PR-10a is activated by evicting the repressosome and recruiting Why! to the promoter. These results advance our understanding of the mechanisms regulating PR-l and PR-10a expression under resting and inducing conditions. This study also revealed that the means of regulation for related genes can differ greatly between model and crop s

Hydrodynamic Study of Swirling Fluidized Bed and the Role of Distributor

The study aims to the hydrodynamic characteristics of swirling fluidized bed, using large particles (Geldart D-type) selected from locally available agricultural produce (coffee beans and black pepper). The important variables considered in the present study include percentage area of opening, angle of air injection and the percentage useful area of the distributor. A total of seven distributors have been designed and fabricated for a bed column of 300 mm, namely single row vane type distributors (15˚ and 20˚ vane angle), inclined hole type distributors (15˚ and 20˚ vane angle) and perforated plate distributors. The useful area of distributor of single row vane type, three now vane-type and inclined hole-type distributors are respectively 64%,91% and 94%. The hydrodynamic parameters considered in the present study include distributor pressure drop, air velocity, minimum fluidizing velocity, bed pressure drop, bed height and the bed behaviour. It has been observed that, in general, the distributor pressure drop decreases with an increase in the percentage area of opening, Further, and increase in the area of opening above 17% will not considerably reduce the distributor pressure drop. In the present study, for the distributor with an area of opening 17%, and corresponding to the maximum measured superficial velocity of 4.33 m/s, the distributor pressure drop obtained was 55.25mm of water. The study on the bed behavior revealed that, in a swirling fluidized bed, once swirl motion starts, the bed pressure drop increases with superficial velocity in the outer region and it decreases in the inner region. This means that, with higher superficial velocity, the air might get by-passed through the inner boundary of the bed (around the cone). So, depending on the process for which the bed is used, the maximum superficial velocity is to be limited to have an optimum bed performance.

The Minimum core for language and literacy : knowledge, understanding and personal skills.

Guía práctica sobre lenguaje y alfabetización para profesores en formación (nivel bachillerato). Les permite identificar y desarrollar sus propias habilidades lingüísticas y de alfabetización y al mismo tiempo apoyar la evolución de los alumnos. Contiene todas las áreas claves de conocimiento, compresión y habilidades personales, además de analizar en un contexto amplio cómo el lenguaje y la alfabetización se adquieren y se desarrollan a nivel personal, social y cultural. El contenido está adaptado para la obtención de los certificados QTLS (Qualified Teacher, Learning and Skills) y ATLS (Associate Teacher, Learning and Skills).

The Minimum core for information and communication technology : knowledge, understanding and personal skills.

Guía práctica sobre tecnologías de la información y la comunicación para profesores en formación (nivel bachillerato). Les permite identificar y desarrollar sus propias habilidades tecnológicas aplicadas a la enseñanza y al mismo tiempo apoyar la evolución de los alumnos. Contiene todas las áreas claves de conocimiento, compresión y habilidades personales, además de analizar en un contexto amplio cómo las habilidades tecnológicas en información y comunicación se adquieren y se desarrollan a nivel personal, social y cultural. El contenido está adaptado para la obtención de los certificados QTLS (Qualified Teacher, Learning and Skills) y ATLS (Associate Teacher, Learning and Skills).

The persistence of solar activity indicators and the descent of the sun into Maunder Minimum conditions

The recent low and prolonged minimum of the solar cycle, along with the slow growth in activity of the new cycle, has led to suggestions that the Sun is entering a Grand Solar Minimum (GSMi), potentially as deep as the Maunder Minimum (MM). This raises questions about the persistence and predictability of solar activity. We study the autocorrelation functions and predictability R^2_L(t) of solar indices, particularly group sunspot number R_G and heliospheric modulation potential phi for which we have data during the descent into the MM. For R_G and phi, R^2_L (t) > 0.5 for times into the future of t = 4 and 3 solar cycles, respectively: sufficient to allow prediction of a GSMi onset. The lower predictability of sunspot number R_Z is discussed. The current declines in peak and mean R_G are the largest since the onset of the MM and exceed those around 1800 which failed to initiate a GSMi.