Applicatiion of Almost ideal demand system for a pharmaceutical

This thesis is an application of the Almost Ideal Demand System approach of Deaton and Muellbauer,1980, for a particular pharmaceutical, Citalopram, in which GORMAN´s (1971) multi-stage budgeting approach is applied basically since it is one of the most useful approach in estimating demand for differentiated products. Citalopram is an antidepressant drug that is used in the treatment of major depression. As for most other pharmaceuticals whose the patent has expired, there exist branded and generic versions of Citalopram. This paper is aimed to define its demand system with two stage models for the branded version and five generic versions, and to show whether generic versions are able to compete with the branded version. I calculated the own price elasticities, and it made me possible to compare and make a conclusion about the consumers’ choices over the brand and generic drugs. Even though the models need for being developed with some additional variables, estimation results of models and uncompensated price elasticities indicated that the branded version has still power in the market, and generics are able to compete with lower prices. One important point that has to be taken into consideration is that the Swedish pharmaceutical market faced a reform on October 1, 2002, that aims to make consumer better informed about the price and decrease the overall expenditures for pharmaceuticals. Since there were not significantly enough generic sales to take into calculation before the reform, my paper covers sales after the reform.

The Impact of Foreign Direct Investment on International Trade: An Empirical Study of China

This paper investigates the impact of inward FDI (Foreign Direct Investment) on international trade of China empirically on the country level by using panel data from 1984 to 2007. Two separate transformed models which are based on the gravity equation and refer to the econometric models of some previous studies, are used in this paper to estimate the effect of FDI inflows on exports and imports respectively. The estimation results confirmed the complementary relationship between FDI inflows and trade of China both on exports and imports, which has also been supported by previous empirical studies.

Modelling Recreation Demand Using Choice Experiments : Using Swedish Snowmobilers Demand for Groomed trails

This paper is concerned with the use of the choice experiment method for modeling the demand for snowmobiling . The Choice Experiment includes five attributes, standard, composition, length, price day card and experience along trail. The paper estimates the snowmobile owners’ preferences and the most preferred attributes, including their will-ingness to pay for a daytrip on groomed snowmobile trail. The data consists of the an-swers from 479 registered snowmobile owners, who answered two hypothetical choice questions each. Estimating using the multinominal logit model, it is found that snow-mobilers on average are willing to pay 22.5 SEK for one day of snowmobiling on a trail with quality described as skidded every 14th day. Furthermore, it is found that the WTP increases with the quality of trail grooming. The result of this paper can be used as a yardstick for snowmobile clubs wanting to develop their trail net worth, organizations and companies developing snowmobiling as a recreational activities and marketers in-terested in marketing snowmobiling as recreational activities.

Passive solar options for reducing heating demand and maintain indoor climate in a multifamily house in Sweden

This research was carried out by studying possible renovation of a two-storey detached multifamily building by using passive solar design options in a cold climate in Borlänge, Sweden where the heating Degree Days are 4451 (base 20°C). Borlänge`s housing company, Tunabyggen, plans to renovate the project house located inthe multicultural district, Jakobsgårdarna. The goal of the thesis was to suggest a redesign of the current building, decrease the heating energy use, by applying passive solar design and control strategies, in a most reasonable way. In addition ensure a better thermal comfort for the tenants in the dwellings. Literatures have been studied, from which can be inferred that passive design should be abasic design consideration for all housing constructions, because it has advantages to ensure thermal comfort, and reduce the energy use. In addition further savings can be achieved applying different types of control strategies, from which the house will be more personalized, and better adapted to the user’s needs.The proposed method is based on simulations by using TRNSYS software. First a proper building model was set up, which represents the current state of the project building. Then the thermal insulation and the windows were upgraded, based on today's building regulations. The developments of the passive solar options were accomplished in two steps. First of all the relevant basic passive design elements were considered, then those advantages were compared to the advantages of applying new conventional thermostat, and shading control strategies.The results show that there is significant potential with the different types of passive solar design; their usage depends primarily on the location of the site as well as the orientation of the project building. Applying the control strategies, such as thermostat, and shading control, along the thermal insulation upgrade, may lead to significant energy savings (around 40 %), by comparison to the reference building without any upgrade.

Price elasticity of demand for cigarettes : The Case of Sweden

Due to health problems and the negative externalities associated with cigarette consumption, many governments try to discourage cigarette consumption by increasing its price through taxation. However, cigarette, like the other addictive goods, is viewed as that it is not sensitive to demand rules and the market forces. This study analyses the effect of price increase on cigarette consumption. We used Swedish time series data from 1970 to 2010. Our results reveal that though cigarette is addictive substance its demand is sensitive to changes in the price. Estimates from this study indicate short-run price-elasticity of -0.29 and the long run price elasticity of -0.47.

Extended local labor markets due to high speed trains : Visualization of estimations in the Swedish national travel demand forecasting tool, SAMPERS

Wider economic benefits resulting from extended geographical mobility is one argument for investments in high-speed rail. More specifically, the argument for high-speed trains in Sweden has been that they can help to further spatially extend labor market regions which in turn has a positive effect on growth and development. In this paper the aim is to cartographically visualize the potential size of the labor markets in areas that could be affected by possible future high-speed trains. The visualization is based on the forecasts of labor mobility with public transport made by the Swedish national mobility transport forecasting tool, SAMPERS, for two alternative high-speed rail scenarios. The analysis, not surprisingly, suggests that the largest impact of high-speed trains results in the area where the future high speed rail tracks are planned to be built. This expected effect on local labor market regions of high-speed trains could mean that possible regional economic development effects also are to be expected in this area. However, the results, in general, from the SAMPERS forecasts indicaterelatively small increases in local labor market potentials.

An analysis of linkage between foreign direct investment and GDP per Capita in Pakistan : A time series analysis

This study aims to investigate the relation between foreign direct investment (FDI) and per capita gross domestic product (GDP) in Pakistan. The study is based on a basic Cobb-Douglas production function. Population over age 15 to 64 is used as a proxy for labor in the investigation. The other variables used are gross capital formation, technological gap and a dummy variable measuring among other things political stability. We find positive correlation between GDP per capita in Pakistan and two variables, FDI and population over age 15 to 64. The GDP gap (gap between GDP of USA and GDP of Pakistan) is negatively correlated with GDP per capita as expected. Political instability, economic crisis, wars and polarization in the society have no significant impact on GDP per capita in the long run.