Environmental policy under product differentiation and asymmetric costs - Does Leapfrogging occur and is it worth it?
Jacqueline Rothfels
IWH Discussion Papers,
Nr. 124,
2000
Abstract
This paper studies the influence of environmental policies on environmental quality, domestic firms, and welfare. Point of departure is Porter’s hypothesis that unilateral environmental regulation may enhance the competitiveness of domestic firms. This hypothesis has recently received considerable support in theoretical analyses, especially if imperfectly competitive markets with strategic behavior on behalf of the agents are taken into account. Our work contributes to this literature by explicitely investigating the implications of asymmetric cost structures between a domestic and a foreign firm sector. We use a partial-equilibrium model of vertical product differentiation, where the consumption of a product causes environmental harm. Allowing for differentiated products, the domestic industry can either assume the market leader position or lag behind in terms of the environmental quality of the produced product. Assuming as a benchmark case that the domestic industry lags behind, we investigate the possibility of the government to induce leapfrogging of the domestic firm, i.e. a higher quality produced by the domestic firm after regulation than that of the competitor prior to regulation. It is shown that in the case of a cost advantage for the domestic firm in the production process the imposition of a binding minimum quality standard can serve as a tool to induce leapfrogging. In case of a cost disadvantage the same result can be achieved through an adequate subsidization of quality dependend production costs. Thus, careful regulation enables the domestic firm in both scenarios to better its competitive position against foreign competitors and to earn larger profits. Additionally, environmental quality and welfare can be enhanced.
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Identification of multiple equation probit models with endogenous dummy regressors
Joachim Wilde
Economics Letters,
Nr. 69,
2000
Abstract
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The Total Cost of Trading Belgian Shares: Brussels versus London
Hans Degryse
Journal of Banking and Finance,
Nr. 9,
1999
Abstract
Since 1990, London’s SEAQ International (SEAQ-I) has attracted considerable trading volume in Belgian equities. This paper investigates competition between the Brussels CATS market and London’s SEAQ-I. Toward this end, we gathered extensive limit order book data as well as transactions and quotation information. With regard to liquidity (indirect costs), measured by the quoted and effective bid–ask spread, the paper concludes that CATS outperforms SEAQ International for both measures. The effective spread is of course substantially smaller than the quoted spread, with the CATS effective spread showing a U-shaped form. This paper, unique in employing an extensive data set that includes all hidden orders and the whole limit order book, produces results in line with the different market microstructure models. Total trading costs on CATS are lower (higher) for small (large) trade sizes.
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The "German Model" in Decline
Jens Hölscher, Johannes Stephan
East Germany’s Economic Development since Unification,
1998
Abstract
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Corporate Taxation and Capital Structure Choice in Germany: A General Equilibrium Model
Reint E. Gropp
FinanzArchiv,
Nr. 2,
1995
Abstract
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Une présentation brève du modèle SNUS-1 (Straßenverkehrs-Nachfrage, Unfälle und ihre Schwere)
Ulrich Blum
Modèlisation de l insècuritè routière, Paradigme,
1993
Abstract
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Rsquare in restricted linear models (zusammen mit Knautz, H.)
Joachim Wilde
Communications in Statistics-Theory and Methods,
Nr. 22,
1993
Abstract
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A Spatial Model of the State
Ulrich Blum, Leonard Dudley
Zeitschrift für die gesamte Staatswissenschaft (Journal of Institutional and Theoretical Economics),
1991
Abstract
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Aggregate Time Series Gasoline Demand Models: Review of Literature and New Evidence for West Germany
Ulrich Blum, Marc Gaudry, Gertraud Foos
Transportation Research A 22,
1988
Abstract
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The Input-Output-Model of the GDR Forest Sector
Hans-Ulrich Brautzsch
Input-Output-Modelling,
1987
Abstract
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