Table Of ContentEssays on Microeconomics
and Industrial Organisation
Contributions to Economics
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Transformations in Hungary 2003. ISBN 3-7908-1524-1
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Claus Brand Utility and Production, 2nd Edition
Money Stock Control and Inflation Targeting
2003. ISBN 3-7908-1423-7
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The Role of Financial Markets
Erik Liith
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Private Intergenerational Transfers
2003. ISBN 3-7908-0004-X
and Population Aging
2001. ISBN 3-7908-1402-4
Guido S. Merzoni
Nicole Pohl
Strategic Delegation in Firms
Mobility in Space and Time
and in the Trade Union
2001. ISBN 3-7908-1380-X
2003. ISBN 3-7908-1432-6
Pablo Coto-Millän (Ed.)
Essays on Microeconomics and Industrial Jan B. Kune
Organisation On Global Aging
2002. ISBN 3-7908-1390-7 2003. ISBN 3-7908-0030-9
Mario A. Maggioni
Sugata Marjit, Rajat Acharyya
Clustering Dynamics and the Locations of
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High-Tech-Firms
and the Developing Economy
2002. ISBN 3-7908-1431-8
2003. ISBN 3-7908-0031-7
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Technological Change and Regional Francesco C. Billari/Alexia Prskawetz (Eds.)
Development in Europe Agent-Based Computational Demography
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Alberto Quadrio Curzio/Marco Fortis (Eds.)
Complexity and Industrial Clusters Georg Bol/Gholamreza Nakhaeizadeh/
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Friedel Bolle/Marco Lehmann-Waffenschmidt Karl-Heinz Vollmer (Eds.)
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Surveys in Experimental Economics 2003. ISBN 3-7908-0054-6
2002. ISBN 3-7908-1472-5
Christian Müller
Pablo Coto-Millän Money Demand in Europe
General Equilibrium and Welfare 2003. ISBN 3-7908-0064-3
2002. ISBN 7908-1491-1
Wojciech W. Charemza/Krystyna Strzala (Eds.) Cristina Nardi Spiller
East European Transition and EU The Dynamics of the Price Structure
Enlargement and the Business Cycle
2002. ISBN 3-7908-1501-1 2003. ISBN 3-7908-0063-5
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Systemic Transformation, Trade and Public Debt and Endogenous Growth
Economic Growth 2003. ISBN 3-7908-0056-1
2002. ISBN 3-7908-1521-7
Brigitte Preissl/Laura Solimene
Josef Falkinger
The Dynamics of Clusters and Innovation
A Theory of Employment in Firms
2003. ISBN 3-7908-0077-5
2002. ISBN 3-7908-1520-9
Engelbert Plassmann Markus Gangl
Econometric Modelling of European Money Unemployment Dynamics in the
Demand United States and West Germany
2003. ISBN 3-7908-1522-5 2003. ISBN 3-7908-1533-0
Pablo Coto-Millän
Editor
Essays on Microeconomics
and Industrial Organisation
Second, Revised and Enlarged Edition
With 48 Figures and 103 Tables
Springer-Verlag Berlin Heidelberg GmbH
Series Editors
Werner A. Müller
Martina Bihn
Editor
Professor Dr. Pablo Coto-Millän
University of Cantabria
Department of Economics
Avda. Los Castros s/n.
39005 Santander
Spain
[email protected]
ISSN 1431-1933
ISBN 978-3-7908-0104-0 ISBN 978-3-7908-2670-8 (eBook)
DOI 10.1007/978-3-7908-2670-8
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Table of Contents
Introduction 1
PART I Demand 3
1 Modeling Seasonal Integrated Time Series: the Spanish
Industrial Production Index
J. L. Gallego-Gomez 5
1.1 Seasonal Time Series Models 5
1.2 Forecasting 9
1.3 Unobservable Components 11
1.4 Empirical Analysis 12
References 16
2 Passenger's Choice of Air Transport under Road Competition:
the Use of Cointegration Techniques
J. Bafios-Pino, P. Coto-Millan, V. Inglada-Lopez de Sabando 19
2.1 Introduction 19
2.2 The Model 21
2.3 The Data 22
2.4 Marshallian or Non Compensated Demands ofInterurban Passenger
Transport: Air and Road Transport 23
2.4.1 Air Transport Demand 23
2.4.2 Road Transport Demand 25
2.5 Conclusions 27
References 27
3 Introduction of an Innovative Product: the High Speed Train
(AVE)
V. Inglada-Lopez de Sabando, P. Coto-Millan 29
3.1 AVE: Characterisation 29
3.2 Qualitative Analysis 31
3.3 The Concept of Generalised Cost 33
VI Table of Contents
3.4 Comparison Among Different Competing Products 35
3.5 Induction and Substitution Effects 38
3.5.1 Induction Effect 38
3.5.2 Substitution Effect 39
3.5.3 The Demand for the New Product 39
3.6 Impact on Demand 40
References 40
4 An Approach to the Hub-and-Spoke Systems from SVARs
Models. A Practical Application to Container Traffic between
the Port of Bahia de Aigeciras and Other Ports of the Spanish
Port System (Bahia de Cadiz and Las Palmas)
J. I. Castillo-Manzano,P.Coto-Milhln, L. Lopez-Valpuesta 41
4.1 Introduction and Reasons for Analysis 41
4.2 VAR Models: Methodological Approach 42
4.2.1 Impulse Response 43
4.3 Formulating Long-Run Restrictions under a SVAR Model Applied to
a Hub-and-Spoke System 44
4.4 Practical Application to Container Traffic between the Bahia de
Algeciras Port and other Ports of the Spanish Port System 47
4.4.1 Scenario 1:Existence ofaSharedHinterland between the
Infrastructures. Practical Applications: Bivariate SVAR
between the Ports Bahia de Algeciras and Cadiz 48
4.4.2 Scenario 2:Lack ofSharedHinterlandbetween Infrastructures.
A Practical Application : Bivariate SVAR between the Bahia
de Algeciras and Las Palmas Ports 53
4.5 Conclusions 57
References 58
PART II. Production and Costs (Supply) 59
5 Technical and Allocative Inefficiency in Spanish Public
Hospitals
C. Garcia-Prieto 61
5.1 The Model 62
5.2 Definition ofVariables and Functional Specification 66
5.2.1 Outputs 67
5.2.2 Input Prices 67
5.2.3 Fixed Input 68
5.2.4 Functional Form 68
5.3 Estimation and Results 69
5.4 Conclusions 72
References 73
Table of Contents VII
6 Technical Efficiency of Road Haulage Firms
J. Bafios-Pino, P. Coto-Millan, A. Rodriguez-Alvarez, V. Inglada-Lopez
de Sabando 75
6.1 Introduction 75
6.2 Efficiency 76
6.3 Classification of Efficiency Frontiers 78
6.4 A Theoretical Application to Goods Haulage Companies on
Spanish Roads Using Panel Data 80
References 86
7 Technical Efficiency and Liberalisation within International
Air Transport (1992-2000)
P. Coto-Millan, V. Inglada-Lopez de Sabando, B. Rey,
A. Rodriguez-Alvarez 89
7.1 Introduction 89
7.2 Methodology 92
7.3 Description of the Data and the Variables Used 94
7.4 Econometric Specification 94
7.5 Results of the Estimation 95
7.6 Conclusions 100
References 101
8 Technological Innovation and Employment: Intersectoral
Appraisals of Structural Change in the Service Economy
D. Diaz-Fuentes 103
8.1 Introduction 103
8.2 Extent of Structural Change in Services Employment 106
8.3 Innovation and Employment Trends in Structural Change 108
8.4 Embodied Technology and Technology Diffusion in Services 110
8.5 Compositional Structural Change in Employment (Final and
Intermediate Demand for Services) 114
8.6 Conclusions 116
References 117
PART III Market and Industrial Structure 121
9 The Measurement of Intra-industry Trade and Specialisation:
a Review
G. Carrera-Gomez 123
9.1 Measures of Intra-industry Trade and Specialisation 123
9.1.1 Intra-industry Trade Indices 124
9.1.2 Intra-industry Specialisation Indices 131
9.1.3 Comparison of Measures 134
VIII Table of Contents
9.1.4 Later Developments 136
9.2 Trade Imbalance Adjustment 139
9.2.1 Grubel and Lloyd (1975) 139
9.2.2 Aquino (1978) 141
9.2.3 Balassa (1979) 144
9.2.4 Loertscher and Wolter (1980) 145
9.2.5 Bergstrand (1982) 145
9.2.6 Comments and Conclusions 147
9.3 Categorical Aggregation 148
9.3.1 Definition of the Problem 148
9.3.2 Categorical Aggregation Tests 149
9.3.3 Critics and Conclusions 151
9.4 Summary and Conclusions 152
References 153
10 Measurement of Intra-industry Trade: a Categorical
Aggregation Exercise with Spanish Trade Data
G. Carrera-Gomez 155
10.1 Introduction 155
10.2 Methodology 156
10.2.1 Measurement ofIntra-industry Trade 156
10.2.2 Categorical Aggregation : Definition of the Problem
and Assessment Methods 157
10.3 Main Results Obtained 159
10.4 Summary and Conclusions 162
References 163
11 The Determinants of Intra-industry Trade in Spanish
Manufacturing Sectors: a Cross-section Analysis
G. Carrera-Gomez 165
11.1 Spanish Intra-industry Trade Measurement 166
11.2 Analysis of the Determinants ofIntra-industry Trade in Spain 167
11.2.1 Hypotheses 167
11.2.2 Data, Variables and Econometric Model 169
11.2.3 Results 171
11.3 Summary and Conclusions 173
References 173
12 Economic Integration, Vertical and Horizontal Intra-industry
Trade and Structural Adjustment: the Spanish Experience
G. Carrera-Gomez 175
12.1 Data and Methodology 176
12.2 Results 179
12.3 Summary and Conclusions 184
References 184
Table of Contents IX
PART IV. Failures of Market and Industrial Regulation 187
13 Organisation and Regulation of the Port Industry: Europe
and Spain
B. Tovar, L. Trujillo, S. Jara-Diaz 189
13.1 Introduction 189
13.2 Models of Port Property and Management 190
13.3 Private Participation in Ports 191
13.4 Regulation ofPort Activities 193
13.5 Port Services and Terminals 194
13.5.1 Cargo Unitisation 196
13.5.2 Factors of Production and Their Regulation 196
13.6 Port Regulation in the European Union 199
13.6.1 Port Regulation in Spain 201
13.7 Conclusions 203
References 205
14 Positive Theory of Regulation: an Application to Spanish
Foreign Trade
G. Carrera-Gomez, P. Coto-Milhin, J. Villaverde-Castro 209
14.1 Introduction 209
14.2 Data and Variables 210
13.3 Empirical Results 214
14.4 Conclusions 216
References 216
15 Structure, Functioning and Regulation of the Spanish
Electricity Sector. The Legal Framework and the New
Proposals for Reform
F. J. Ramos-Real, E. Martinez-Budria, S. Jara-Diaz 219
15.1 Introduction 219
15.2 Structure, Functioning and Regulation of the Spanish Electricity
Sector between 1983-1996 220
15.2.1 The Reform Process and the Basic Principles Regulating
the System's Operation (1983-1996) 222
15.2.2 Unified Management and Central Planning 223
15.2.3 The Rates and Financial Return Policy of the Legal and Stable
Framework (MLE) 224
15.3 Regulation Reform in the Spanish Electricity Sector from 1997 231
15.4 Conclusions 235
References 236
X Table of Contents
16 Effects of a Reduction of Standard Working Hours on Labour
Market Performance
C. Perez-Dominguez 237
16.1 Effects on Employment 238
16.1.1 The Basic Model 238
16.1.2 The Role of Fixed Labour Costs 239
16.1.3 Effort Effect and Organisational Effect 241
16.2 Effects on Labour Market Participation 244
16.2.1 Labour Market Participation with Compulsory Working Hours 244
16.2.2 Effects of a Reduction of the Working Hours on Aggregate
Labour Supply 246
16.3 Effects on the Unemployment Rate 247
16.3.1 The Basic Case 247
16.3.2 Effects on the Unemployment Rate under a More General
Model 249
16.4 Conclusions 250
References 251
17 Transitional Dynamics and Endogenous Growth Revisited:
the Case of Public Capital
B. Sanchez-Robles 253
17.1 Introduction 253
17.2 Setup of the Models 254
17.3 Solution for the BGP in the CES Case 256
17.4 The Time Elimination Method and the Analysis of Transitional
Dynamics 260
17.5 Discussion of the Main Results of the Simulations 262
17.6 Conclusions 272
Appendix 273
References 274
18 Unions, Wages and Productivity. The Spanish Case,
1981-2000 .
N. Sanchez-Sanchez, B. Sanchez-Robles 277
18.1 Introduction 277
18.2 Theoretical Background 280
18.2.1 Elasticity of Output with Respect to Unions through Wages 281
18.2.2 Elasticity of Productivity to Unions through Changes in
Efficiency 282
18.2.3 Total Elasticity of Productivity to Unions 283
18.3 Empirical Analysis 283
18.4 Data and Variables 285
18.5 Main Empirical Results 286
18.6 Concluding Remarks 293
References 294
