During the last two decades there has been an increase in using dynamic tariffs for billing household electricity consumption. This has questioned the suitability of traditional pricing schemes, such as two-part tariffs, since they contribute to create marked peak and off-peak demands. The aim of this paper is to assess if two-part tariffs are an efficient pricing scheme using Spanish household electricity microdata. An ordered probit model with instrumental variables on the determinants of power level choice and non-paramentric spline regressions on the electricity price distribution will allow us to distinguish between the tariff structure choice and the simultaneous demand decisions. We conclude that electricity consumption and dwellings’ and individuals’ characteristics are key determinants of the fixed charge paid by Spanish households Finally, the results point to the inefficiency of the two-part tariff as those consumers who consume more electricity pay a lower price than the others.
Laura Fernàndez-Villadangos (GPRE-IREA)
Privatization of local public services has been implemented worldwide in the last decades. Why local governments privatize has been the subject of much discussion, and many empirical works have been devoted to analyzing the factors that explain local privatization. Such works have found a great diversity of motivations, and the variation among reported empirical results is large. To investigate this diversity we undertake a meta-regression analysis of the factors explaining the decision to privatize local services. Overall, our results indicate that significant relationships are very dependent upon the characteristics of the studies. Indeed, fiscal stress and political considerations have been found to contribute to local privatization specially in the studies of US cases published in the eighties that consider a broad range of services. Studies that focus on one service capture more accurately the influence of scale economies on privatization. Finally, governments of small towns are more affected by fiscal stress, political considerations and economic efficiency, while ideology seems to play a major role for large cities.
Germà Bel (GPRE-IREA); Xavier Fageda (GPRE-IREA)
We distinguish and assess three fundamental views of the labor market regarding the movements in unempoyment: (i) the frictionless equilibrium view; (ii) the chain reaction theory, or prolonged adjustment view; and (iii) the hysteresis view. While the frictionless view implies a clear compartmentalization between the short- and long-run, the hysteresis view implies that all the short-run fluctuations automatically turn into long-run changes in the unemployment rate. We assert the problems faced by these conceptions in explaining the diversity of labor market experiences across the OECD labor markets. We argue that the prolonged adjustment view can overcome these problems since it implies that the short, medium, and long runs are interrelated, merging with one another along an intertemporal continuum.
Marika Karanassou; Hector Sala (GEAP) and Dennis J. Snower
En aquest article es duu a terme el contrast de la hipòtesi de paritat entre tipus d.interès reals (RIRP) entre dinou dels majors paísos de la OCDE al llarg del període 1978:Q2-1998:Q4. La metodologia economètrica aplicada es basa en la combinació de l.ús de diversos contrastos d.arrel unitària i d.estacionarietat dissenyats per un entorn de dades de panell que són vàlids sota la presència de dependència entre els individusi presència de múltiples canvis estructurals. Els nostres resultats donen fort suport al compliment de la versió dèbil de la RIRP en el període analitzat un cop la dependencia i els canvis estructurals són tinguts en compte.
Mariam Camarero; Josep Lluis Carrion-i-Silvestre (AQR-IREA) and Cecilio Tamarit