We develop a theoretical model of long-run investment decisions on capacity in the context of a liberalized electricity … the level of capacity that maximizes social welfare, and compare it to a decentralized outcome. We show that in the … absence of any regulation, private investment decisions on capacity unambiguously lead to a socially sub-optimal outcome, and …

a model in which facilities can produce output at a privately known cost up to a previously-determined capacity level …. In such a model, the amount of slack in the firm is shown to be pro-cyclical. Indeed, as capacity constraints become … capacity. …

This paper compares how cash and in-kind transfers affect local prices. Both types of transfers increase the demand for … normal goods, but only in-kind transfers also increase supply. Hence, in-kind transfers should lead to lower prices than cash …

Using annual data from several sources, we study the evolution of M1, M2, income, prices and long and short interest … rates in Ireland over the period 1933-2012. We find cointegration and that prices, income and interest rates are weakly …

This paper examines the extent to which the destination of exports matters for the input prices paid by firms, using … destinations and find that exporting to richer countries leads firms to charge more for outputs and pay higher prices for inputs …

firms, elasticity of substitution between goods and degree of transparency on equilibrium prices. The main result is that … the following 'common wisdom' is incorrect: more transparent markets always feature lower prices, higher consumer welfare …