6,453 research outputs found
Episode 47: Coffee Talk with Dr. Emmet G. Price III
No full textDr Emmett G Price III, renowned pianist, composer, ordained minister, author, and now Dean of Africana Studies at Berklee College of Music joins us this week
Uncertainty and the price for crude oil reserves
No full textInnovations in futures, options, and derivative instruments permit active trading, speculating and hedging - linking markets for physical petroleum products with financial markets. These derivative markets continuously value petroleum delivered today and for future dates, providing a market price for inventories. Underground petroleum reserves are also an inventory defined by exploration surveys and development drilling. Thus, observable market information can be used to value these reserves. Option - valuation models can be used to price reserves using observable markets, but are dependent on unexplained convenience yields revealed by the term structure of futures prices. The authors apply a general inventory pricing model to petroleum inventories and generate an empirical model of the returns to storage for petroleum markets. They examine the determinants of the crude oil convenience yield using a stochastic control model. They specify optimal production and inventory conditions using a third-order cost function and estimate them using monthly observations. Their inventory arbitrage condition embodies the Hotelling principle and Kaldor's convenience yield, and includes a premium on the dispersion in crude oil prices. The empirical results suggest that returns to storage contain both a cost-reducing component and often sizable premiums associated with the dispersion of petroleum prices. Their findings suggest that crude oil markets differentiated by quality and location provide similar premiums. The premiums associated with the dispersion of petroleum prices may account for persistent backwardation in crude oil prices. This finding may also explain the wide discrepancies between Hotelling values and transaction prices found in previous studies.Economic Theory&Research,Environmental Economics&Policies,Markets and Market Access,Labor Policies,Payment Systems&Infrastructure,Oil Refining&Gas Industry,Environmental Economics&Policies,Access to Markets,Markets and Market Access,Economic Theory&Research
The fiscal theory of the price level
No full textA traditional function of the central bank is to control the price level. The fiscal theory of the price level challenges this assumption, arguing instead that the fiscal authority's budgetary policy is the primary determinant of the price level. The authors provide a critical review of the fiscal theory and its implications for monetary policy.Banks and banking, Central ; Fiscal policy ; Monetary policy
Price hedonics: a critical review
No full textThis paper was presented at the conference "Economic Statistics: New Needs for the Twenty-First Century," cosponsored by the Federal Reserve Bank of New York, the Conference on Research in Income and Wealth, and the National Association for Business Economics, July 11, 2002. The main objective of this paper is to make a start in the evaluation of price hedonics. The author describes the hedonic model and reviews its main uses, because the credibility of price hedonics depends in part on the current state of academic research. This is a brief overview. The author then turns to some of the standard criticisms of price hedonics and moves into the uncharted waters of the political economy of price measurement.Statistics ; Prices ; Consumer price indexes
The Behaviour of Consumer Prices Across Provinces
No full textMeasures of core inflation enable a central bank to distinguish price movements that are transitory and generated by non-monetary events from those that are more permanent and related to prior monetary policy decisions. The author uses standard statistical measures to assess the behaviour of consumer prices across provinces and identify price components with more divergent price patterns. The results indicate that energy, shelter and tobacco prices are the most volatile across provinces. Very large price movements restricted to one or a few provinces suggest that the forces or events triggering those movements may be province specific and unrelated to national demand pressures. Such results suggest that constructing a type of core inflation measure called the “trimmed mean” that excludes components with exceptionally large price changes at the provincial level may offer an alternative means of assessing underlying inflationary pressures.Inflation and prices
#eVALUate: Monetizing Service Acquisition Trade-offs Using the Quality-Infused Price© Methodology
No full textDefense Acquisition UniversityCaptain Daniel J. Finkenstadt, USAF and Lt. Col. Timothy G. Hawkins, USAF (Ret.) authored “#eVALUate: Monetizing Service Acquisition Trade-offs Using the Quality-Infused Price© Methodology,” appeared in the April 2016 issue of Defense ARJ. Captain Finkenstadt graduated from NPS in Fall 2011 with an MBA in Strategic Sourcing. His MBA Professional Report, co-authored with Andrew J. Peterson, was A Benchmark Study of the Air Force Program Executive Office for Combat and Mission Support. Captain Finkenstadt, who has authored six additional articles related to contract management, is currently a procuring contracting officer at the National Reconnaissance Office (NRO) in Chantilly, Virginia
Endogenous Fixprices and Sticky Price Adjustment of Risk-averse Firms
No full textA risk-averse price-setting firm which knows the quantity demanded at the status quo price but has imperfect information otherwise may choose not to change it although an otherwise identical risk-neutral firm would do so, provided the variance of the firm's subjective probability distribution over quantities demanded as a function of price displays a kink at the status quo. This is equivalent to risk aversion of order one. When no such endogenous fixprice exists, the size of price adjustment still tends to zero as risk aversion tends to infinity, and to any arbitrarily small menu cost there exists a degree of risk aversion so that the firm will not adjust.fixed prices, price adjustment, risk aversion, menu cost
Price-level and interest-rate targeting in a model with sticky prices
No full textAn examination of a standard sticky-price monetary model whose conditions are perturbed relative to the canonical real-business-cycle model by two varying distortions: marginal cost and the nominal rate of interest. The paper explores the implications of two monetary policies that are frequently advocated: (1) an inflation target and (2) an interest rate target.Monetary policy ; Inflation (Finance)
Retailing legend Betty Price talks about her Liebermann's gift store in downtown Lansing, MI, customer services, and collaboration with designer George Nelson
No full textRetailing legend Betty Price talks about her Liebermann's gift store in downtown Lansing, Michigan during a question and answer session at Schuler Books in Okemos, MI. Price discusses her merchandising and customer philosophy, her eye for art and talent, her long friendship and professional relationship with modernist designer George Nelson and their collaborative effort to create a classy, unique environment in her store. She also describes learning the business from her father and then making it her own, selecting merchandise for quality, cost and design and training her sales staff to help select exactly the right piece for a customer. Price is interviewed by Sandra Seaton, recent author of an article on Price in "Modernism" mnagazine and the MSU College of Law Writer in Residence
When does rent-seeking augment the benefits of price and trade reform on rationed commodities? : estimates for automobiles and color televisions in Poland
No full textTo assess the impact of price and trade reform on the Polish market for autos and color televisions, the author has developed a differentiated product model in which consumers maximize utility and firms maximize profits subject to rationing constraints and price controls. This paper focuses on that model. First it discusses the institutional details of the auto and color TV markets in Poland. It then lays out the stylized facts that are incorporated in the model, and discusses the methods of allocating autos and color TVs in the context of the rent-seeking and rent dissipation literature. The final section summarizes the results which find that, all things being equal, the elimination of price controls for both autos and televisions had the effect of decreasing imports, as more domestic autos were produced and sold. The implication is that -- contrary to the Polish government's intention -- price controls were a trade distortion that increased imports: that is, they implicitly subsidized imports. The author also shows that import liberalization produces greater benefits when there are domestic price controls with rent dissipation, because import liberalization reduces the rent. The appendices include a description of the model, a discussion of the data sources, and a review of the literature on rent-seeking activities as it relates to rent dissipation under price controls.Economic Theory&Research,Markets and Market Access,Access to Markets,Environmental Economics&Policies,Fiscal&Monetary Policy
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