This paper develops an affine term structure for the valuation of money market funds. This valuation framework is then used to consider the economic implications of funds that are supported by a capital buffer. The main findings are twofold. First, relatively small capital buffers are capable of absorbing daily fluctuations between a fund’s shadow price and its amortized cost. For example, a fu...

Appropriate assessment of the social value of market access is at the core of a broad range of inquiries in trade research. A selection include: the appraisal of industry-level production and consumption distortions due to selective trade liberalization and partial tax reform; the construction of national-level quantity indicators of market access consistent with welfare change, and the use of ...

Livestock supply must challenge the growth of final demand in the developing countries. This challenge has to take into account its ecological effects since the dairy and livestock sectors are clearly pointed out as human activities which contribute significantly to environmental deterioration. Therefore, livestock activity models have to include desirable and undesirable outputs simultaneously...

In our paper on "Revenue Seeking: A Generalization of the Theory of Tariffs" (1980), we extended the theory of tariffs to include revenue seeking. We also compared tariffs with quotas, under seeking activities associated with the revenues from the former and with the rents (i.e., license premia) from the latter. We argued, among other propositions, that: (1) Revenue seeking was a zero-output ac...

We examine an economy whose consumers have different discount factors for utility, possibly not exponential. We characterize the properties of efficient allocations of resources and of the shadow prices that would decentralize such allocations. We show in particular that the representative agent has a decreasing discount rate when, as is usually posited, all of a group’s members have a constant...

We use the linear programming approach to examine the overall macroeconomic performance and compute shadow prices of SO2 emission abatements for thirty regions in China during the 1996-2002 period. Our major findings are as follows: On average, the east is the most efficient and the west is the most inefficient during these seven years. The average efficiency of those regions with serious acid ...

We consider a distribution grid interconnecting a number of consumers with flexible power consumption. Each consumer is under the jurisdiction of exactly one balancing responsible party (BRP), who buys energy at a day-ahead electricity market on behalf of the consumer. We illustrate how BRPs can utilize the flexibility of the consumers to minimize the imbalance between the consumed and the purc...

Economic models of land allocation may lead to expectations for farmer response that “surprisingly" do not materialize, if market prices fail to reflect the value of farmers' product. “Shadow prices" rather than market prices explain resource allocation better for farmers who attach significant non-market values to their own crops. I extend the theoretical model in Arslan and Taylor (2008) to e...

Article history: Received 22 December 2007 Received in revised form 15 November 2008 Accepted 15 November 2008 Available online 29 December 2008 We present a model of optimal flow pollution control considering explicitly the dynamics of the corresponding assimilative capacity. We focus first on the degradation of this assimilative capacity triggered by pollution excesses and determine the inter...