Essays on the Economics of Intellectual Property Rights

Väitöskirjassani tarkastelen informaatiohyödykkeiden ja tekijänoikeuksien taloustiedettä kahdesta eri perspektiivistä. Niistä ensimmäinen kuuluu endogeenisen kasvuteorian alaan. Väitöskirjassani yleistän ”pool of knowledge” -tyyppisen endogeenisen kasvumallin tilanteeseen, jossa patentoitavissa olevalla innovaatiolla on minimikoko, ja jossa uudenlaisen tuotteen patentoinut yritys voi menettää monopolinsa tuotteeseen jäljittelyn johdosta. Mallin kontekstissa voidaan analysoida jäljittelyn ja innovaatioilta vaaditun ”minimikoon” vaikutuksia hyvinvointiin ja talouskasvuun. Kasvun maksimoiva imitaation määrä on mallissa aina nolla, mutta hyvinvoinnin maksimoiva imitaation määrä voi olla positiivinen. Talouskasvun ja hyvinvoinnin maksimoivalla patentoitavissa olevan innovaation ”minimikoolla” voi olla mikä tahansa teoreettista maksimia pienempi arvo. Väitöskirjani kahdessa jälkimmäisessä pääluvussa tarkastelen informaatiohyödykkeiden kaupallista piratismia mikrotaloustieteellisen mallin avulla. Informaatiohyödykkeistä laittomasti tehtyjen kopioiden tuotantokustannukset ovat pienet, ja miltei olemattomat silloin kun niitä levitetään esimerkiksi Internetissä. Koska piraattikopioilla on monta eri tuottajaa, niiden hinnan voitaisiin mikrotaloustieteen teorian perusteella olettaa laskevan melkein nollaan, ja jos näin kävisi, kaupallinen piratismi olisi mahdotonta. Mallissani selitän kaupallisen piratismin olemassaolon olettamalla, että piratismista saatavan rangaistuksen uhka riippuu siitä, kuinka monille kuluttajille piraatti tarjoaa laittomia hyödykkeitä, ja että se siksi vaikuttaa piraattikopioiden markkinoihin mainonnan kustannuksen tavoin. Kaupallisten piraattien kiinteiden kustannusten lisääminen on mallissani aina tekijänoikeuksien haltijan etujen mukaista, mutta ”mainonnan kustannuksen” lisääminen ei välttämättä ole, vaan se saattaa myös alentaa laillisten kopioiden myynnistä saatavia voittoja. Tämä tulos poikkeaa vastaavista aiemmista tuloksista sikäli, että se pätee vaikka tarkasteltuihin informaatiohyödykkeisiin ei liittyisi verkkovaikutuksia. Aiemmin ei-kaupallisen piratismin malleista on usein johdettu tulos, jonka mukaan informaatiohyödykkeen laittomat kopiot voivat kasvattaa laillisten kopioiden myynnistä saatavia voittoja jos laillisten kopioiden arvo niiden käyttäjille riippuu siitä, kuinka monet muut kuluttajat käyttävät samanlaista hyödykettä ja jos piraattikopioiden saatavuus lisää riittävästi laillisten kopioiden arvoa. Väitöskirjan viimeisessä pääluvussa yleistän mallini verkkotoimialoille, ja tutkin yleistämäni mallin avulla sitä, missä tapauksissa vastaava tulos pätee myös kaupalliseen piratismiin.

Economics of tourism & growth for small island countries

We theoretically analyze the impact of changes in foreign income from tourism source countries on the growth of tourism dependent small island economies. Using a general theoretical construct, we attempt to answer the question of how price elasticity of demand, income elasticity of tourist and the degree of competition in the service sector influence the economic development of small economies. One of the main results is that politicians may consider applying policies which lead to a competitive environment in the service sector to maximize growth and the consequent labor income share.

Design considerations and economics of different shaped surface aeration tanks

This paper deals with the design considerations of surface aeration tanks on two basic issues of oxygen transfer coefficient and power requirements for the surface aeration system. Earlier developed simulation equations for simulating the oxygen transfer coefficient with theoretical power per unit volume have been verified by conducting experiments in geometrically similar but differently shaped and sized square tanks, rectangular tanks of length to width ratio (L/W) of 1.5 and 2 as well as circular tanks. Based on the experimental investigations, new simulation criteria to simulate actual power per unit volume have been proposed. Based on such design considerations, it has been demonstrated that it is economical (in terms of energy saving) to use smaller tanks rather than using a bigger tank to aerate the same volume of water for any shape of tanks. Among the various shapes studied, it has been found that circular tanks are more energy efficient than any other shape.

Conference Report: International Institute of Fisheries Economics and Trade Conference (IIFET) 2014

The 17th Biennial Conference of the International Institute of Fisheries Economics and Trade (IIFET) was held in Brisbane in July 2014. IIFET is the principal international association for fisheries economics, and the biennial conference is an opportunity for the best fisheries economists in the world to meet and share their ideas. The conference was organised by CSIRO, QUT, UTAS, University of Adelaide and KG Kailis Ltd. This is the first time the conference has been held in Australia. The conferences covered a wide range of topics of relevance to Australia. These included studies of fishery management systems around the world, identified key issues in aquaculture and marine biodiversity conservation, and provided a forum for new modelling and theoretical approaches to analysing fisheries problems to be presented. The theme of the conference was Towards Ecosystem Based Management of Fisheries: What Role can Economics Play? Several sessions were dedicated to modelling socio-ecological systems, and two keynote speakers were invited to present the latest thinking in the area. In this report, the key features of the conference are outlined.

The Edge of Danger: artificial lighting and the dialectics of domestic occupation in Philip Johnson's Glass and Guest Houses

In the first half of the twentieth century the dematerializing of boundaries between enclosure and exposure problematized traditional acts of “occupation” and understandings of the domestic environment. As a space of escalating technological control, the modern domestic interior offered new potential to re-define the meaning and means of habitation. This shift is clearly expressed in the transformation of electric lighting technology and applications for the modern interior in the mid-twentieth century. Addressing these issues, this paper examines the critical role of electric lighting in regulating and framing both the public and private occupation of Philip Johnson’s New Canaan estate. Exploring the dialectically paired transparent Glass House and opaque Guest House (both 1949), this study illustrates how Johnson employed artificial light to control the visual environment of the estate as well as to aestheticize the performance of domestic space. Looking closely at the use of artificial light to create emotive effects as well as to intensify the experience of occupation, this revisiting of the iconic Glass House and lesser-known Guest House provides a more complex understanding of Johnson’s work and the means with which he inhabited his own architecture. Calling attention to the importance of Johnson serving as both architect and client, and his particular interest in exploring the new potential of architectural lighting in this period, this paper investigates Johnson’s use of electric light to support architectural narratives, maintain visual order and control, and to suit the nuanced desires of domestic occupation.

The Physical Strenuousness of Work is Slightly Associated with an Upward Trend in the Body Mass Index

This paper explores the relationship between the physical strenuousness of work and the body mass index in Finland, using individual microdata over the period 1972-2002. The data contain self-reported information about the physical strenuousness of a respondent’s current occupation. Our estimates show that the changes in the physical strenuousness of work can explain around 8% at most of the definite increase in BMI observed over the period. The main reason for this appears to be that the quantitative magnitude of the effect of the physical strenuousness of work on BMI is rather moderate. Hence, according to the point estimates, BMI is only around 1.5% lower when one’s current occupation is physically very demanding and involves lifting and carrying heavy objects compared with sedentary job (reference group of the estimations), other things being equal. Accordingly, the changes in eating habits and the amount of physical activity during leisure time must be the most important contributors to the upward trend in BMI in industrialised countries, but not the changes in the labour market structure.

Peeking through the Iron Curtain: Memories of Watching Finnish Television in Estonia during Soviet Occupation

The present study analyses the memories of watching Finnish television in Estonia during the last decades of the Soviet occupation from the late 1960s until the beginning of 1990s. The study stems from a culturalist approach, perceiving television as a relevant aspect in the audiences’ everyday lives. It explores the significance of Finnish television on the society of occupied Estonia from the point of view of its historical audiences. The literature review concentrates on concepts such as the power of television, transnational media, historical audience reception and memory as an object of research. It also explains the concept of spillover, which refers to the unintentional bilateral flow of television signals from one country to another. Despite the numerous efforts of the Soviet authorities to prevent the viewing of the "bourgeois television", there still remained a small gap in the Iron Curtain. The study describes the phenomenon of watching Finnish television in Estonia. It provides understanding about the significance of watching Finnish television in Soviet Estonia through the experiences of its former audience. In addition, it explores what do people remember about watching Finnish television, and why. The empirical data was acquired from peoples’ personal memories through the analysis of private interviews and written responses during the period from February 2010 to February 2011. A total of 85 responses (5 interviews and 83 written responses) were analysed. The research employed the methods of oral history and memory studies. The main theoretical sources of the study include the works of Mati Graf and Heikki Roiko-Jokela, Hagi Šein, Sonia Livingstone, Janet Staiger and Emily Keightley. The study concludes that besides fulfilling the role of an entertainer and an informer, Finnish television enabled its Estonian audiences to gain entry into the imaginary world. Access to this imaginary world was so important, that the viewers engaged in illegal activities and gained special skills, whereby a phenomenon of "television tourism" developed. Most of the memories about Finnish television are vivid and similar. The latter indicates both the reliability and the collectiveness of such memories, which in return give shape to collective identities. Thus, for the Estonian viewers, the experience of watching Finnish television during the Soviet occupation has became part of their identity.

Stochastic differential games: Occupation measure based approach

A new approach based on occupation measures is introduced for studying stochastic differential games. For two-person zero-sum games, the existence of values and optimal strategies for both players is established for various payoff criteria. ForN-person games, the existence of equilibria in Markov strategies is established for various cases.

Potential and economics of forestry options for carbon sequestration in India

There is a need to understand the carbon (C) sequestration potential of the forestry option and its financial implications for each country.In India the C emissions from deforestation are estimated to be nearly offset by C sequestration in forests under succession and tree plantations. India has nearly succeeded in stabilizing the area under forests and has adequate forest conservation strategies. Biomass demands for softwood, hardwood and firewood are estimated to double or treble by the year 2020. A set of forestry options were developed to meet the projected biomass needs, and keeping in mind the features of land categories available, three scenarios were developed: potential; demand-driven; and programme-driven scenarios. Adoption of the demand-driven scenario, targeted at meeting the projected biomass needs, is estimated to sequester 78 Mt of C annually after accounting for all emissions resulting from clearfelling and end use of biomass. The demand-driven scenario is estimated to offset 50% of national C emission at 1990 level. The cost per t of C sequestered for forestry options is lower than the energy options considered. The annual investment required for implementing the demand-driven scenario is estimated to be US$ 2.1 billion for six years and is shown to be feasible. Among forestry options, the ranking based on investment cost per t of C sequestered from least cost to highest cost is; natural regeneration-agro-forestry-enhanced natural regeneration (< US$ 2.5/t C)-timber-community-softwood forestry (US$ 3.3 to 7.3 per t of C).

Mechanism design problems in carbon economics

Reduction of carbon emissions is of paramount importance in the context of global warming and climate change. Countries and global companies are now engaged in understanding systematic ways of solving carbon economics problems, aimed ultimately at achieving well defined emission targets. This paper proposes mechanism design as an approach to solving carbon economics problems. The paper first introduces carbon economics issues in the world today and next focuses on carbon economics problems facing global industries. The paper identifies four problems faced by global industries: carbon credit allocation (CCA), carbon credit buying (CCB), carbon credit selling (CCS), and carbon credit exchange (CCE). It is argued that these problems are best addressed as mechanism design problems. The discipline of mechanism design is founded on game theory and is concerned with settings where a social planner faces the problem of aggregating the announced preferences of multiple agents into a collective decision, when the actual preferences are not known publicly. The paper provides an overview of mechanism design and presents the challenges involved in designing mechanisms with desirable properties. To illustrate the application of mechanism design in carbon economics,the paper describes in detail one specific problem, the carbon credit allocation problem.

Air-pollution and economics: diesel bus versus electric bus

The Bangalore Metropolitan Transport Corporation (BMTC) took an initiative to check the overall benefits of introducing electric buses as a suitable replacement for the diesel buses to tackle the burgeoning pollution in the city of Bengaluru, India. For a trial run of three months, an electric bus was procured from a Chinese company `Build Your Dreams' (BYD). Data were collected by BMTC on the operation and maintenance of the bus. This new initiative, if rightly guided, could have a direct impact on the lives of those in the city. An economic analysis of the running as well as maintenance of the electric buses within the city limits was performed. For comparison, the same analysis was performed for the data from the existing diesel bus operating on the same route. On the basis of the study, it can be concluded that the introduction of electric buses as a means of public transport in the city would be beneficial both economically as well as environmentally. The electric bus also makes much less noise, thereby helping reduce noise pollution and makes less vibration when compared to the diesel bus. This results in a more comfortable journey for the passengers.

Economic measurement in public welfare economics : practical experiences on the regional level in Germany

Resumen: ¿Cuál es el precio justo para la asistencia social? Este artículo muestra que la medición económica efectuada en mercados basados en el valor de los servicios prestados podría responder esta pregunta. La medición económica puede hacer lo mismo en distintos campos del trabajo social aplicando diferentes métodos, tales como ofertas públicas o negociaciones calificadas. Después de dar un breve panorama teórico, se presentan y analizan en detalle dos proyectos alemanes. El artículo muestra cómo la introducción de mecanismos de negociación en la asistencia social expresados en términos de resultados pueden traer efectos positivos para las finanzas públicas, así como también para el bien común.

Reseña bibliográfica : poor economics. A radical rethinking of the way to fight global poverty

El libro recientemente publicado Poor Economics -y la técnica de evaluaciones aleatorias que dan sustento a sus conclusionestienen el potencial para cambiar radicalmente la manera de diseñar políticas para combatir la pobreza en el mundo. El libro fue escrito por Abhijit Banerjee y Esther Duflo, dos jóvenes reconocidos economistas del MIT (Massachusetts Institute of Technology). Duflo, nacida en Francia y educada en el École Normale Supérieure de Paris y MIT, fue ganadora en 2010 del premio John Bates Clark al mejor economista menor de 40 años y considerada por la revista Foreign Policy como una de los 100 intelectuales más influyentes del mundo. Abhijit Banerjee educado en la Universidad de Calcuta (su ciudad de origen) y la Universidad de Harvard también es ganador de numerosos premios.