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Article
Publication date: 18 April 2008

S. Thomas Ng and Jingzhu Xie

The purpose of this paper is to devise a simple but practical model to assist decision makers in evaluating the tariff stability of concession schemes.

Abstract

Purpose

The purpose of this paper is to devise a simple but practical model to assist decision makers in evaluating the tariff stability of concession schemes.

Design/methodology/approach

To develop such a model necessitates the identification of parameters that could contribute to an increase or decline in investment return. With that a Monte‐Carlo‐based simulation model is devised to determine the probability that the tariff regime remains unchanged even when the identified risks do occur at the operational stage. Sensitivity analysis is performed to identify the most influential factors to investment return and tariff stability.

Findings

The results of the scenario indicate that the internal rate of return could be profoundly influenced by the risk factors which reaffirm the needs for a more comprehensive model for tariff stability evaluation.

Research limitations/implications

Through the simulation model, a tariff stability indicator is derived and when integrated with the results of sensitivity analysis this could generate a weighted indicator for alternative tariff regimes for use in decision support systems.

Practical implications

With the aid of simulation techniques, decision makers can predict the impact of a range of possible market conditions and/or levels of demand on the investment return and hence the stability of the tariff regime.

Originality/value

The model could be extended to other types of public‐private partnerships schemes upon suitable adjustment

Details

Construction Innovation, vol. 8 no. 2
Type: Research Article
ISSN: 1471-4175

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Article
Publication date: 19 July 2013

Christian Barrot, Jan U. Becker and Jannik Meyners

This study seeks to examine the effect of pricing as a marketing instrument to stimulate word‐of‐mouth (WOM) by comparing the influence of two pricing strategies (i.e. a…

Abstract

Purpose

This study seeks to examine the effect of pricing as a marketing instrument to stimulate word‐of‐mouth (WOM) by comparing the influence of two pricing strategies (i.e. a low‐complexity vs a network‐effects tariff) on the referral behaviour.

Design/methodology/approach

Using customer data from a German mobile network operator (including information on customer characteristics, referral behaviour, and service usage), the authors develop a logit model.

Findings

Surprisingly, the results indicate that it is the low‐complexity tariff that increases the likelihood of referrals and leads to an overall higher referral activity. Despite the lower referral activity, however, the network‐effects tariff generates higher revenues.

Research limitations/implications

The results show that companies can use pricing schemes to influence referral behaviour and strongly indicate the need of further research on manageable tools to stimulate word‐of‐mouth marketing.

Practical implications

The findings show not only that pricing has an impact on customers' referral behaviour but also that it is the low‐complexity tariffs that trigger referrals. Furthermore, the results underline the importance of considering the monetary value of referrals.

Originality/value

In contrast with many previously conducted studies on customer referrals, the paper explicitly analyses the impact of pricing on referral behaviour and empirically shows that firms are able to actively manage WOM among customers.

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Article
Publication date: 1 December 1994

Hugh M. Arce and Kenneth A. Reinert

A recurrent concern of researchers who measure the cost of protection isthat welfare estimates based on models with highly aggregated sectors ofthe economy in question…

Abstract

A recurrent concern of researchers who measure the cost of protection is that welfare estimates based on models with highly aggregated sectors of the economy in question will understate the true cost of protection if the tariff system is not uniform. Uses the 1988 tariff schedule of the US and a detailed 1988 social accounting matrix of the US to construct a number of aggregation schemes to calculate the extent to which tariff means and variances change under different aggregations. Then uses a computable general equilibrium model to compare the cost of tariff protection between two of the aggregation schemes.

Details

Journal of Economic Studies, vol. 21 no. 6
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 5 June 2017

Ravindra R. Rathod and Rahul Dev Garg

Electricity consumption around the world and in India is continuously increasing over the years. Presently, there is a huge diversity in electricity tariffs across states…

Abstract

Purpose

Electricity consumption around the world and in India is continuously increasing over the years. Presently, there is a huge diversity in electricity tariffs across states in India. This paper aims to focus on development of new tariff design method using K-means clustering and gap statistic.

Design/methodology/approach

Numbers of tariff plans are selected using gap-statistic for K-means clustering and regression analysis is used to deduce new tariffs from existing tariffs. The study has been carried on nearly 27,000 residential consumers from Sangli city, Maharashtra State, India.

Findings

These tariff plans are proposed with two objectives: first, possibility to shift consumer’s from existing to lower tariff plan for saving electricity and, second, to increase revenue by increasing tariff charges using Pay-by-Use policy.

Research limitations/implications

The study can be performed on hourly or daily data using automatic meter reading and to introduce Time of Use or demand based tariff.

Practical implications

The proposed study focuses on use of data mining techniques for tariff planning based on consumer’s electricity usage pattern. It will be helpful to detect abnormalities in consumption pattern as well as forecasting electricity usage.

Social implications

Consumers will be able to decide own monthly electricity consumption and related tariff leading to electricity savings, as well as high electricity consumption consumers have to pay more tariff charges for extra electricity usage.

Originality/value

To remove the disparity in various tariff plans across states and country, proposed method will help to provide a platform for designing uniform tariff for entire country based on consumer’s electricity consumption data.

Details

International Journal of Energy Sector Management, vol. 11 no. 2
Type: Research Article
ISSN: 1750-6220

Keywords

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Article
Publication date: 29 July 2014

Chanwahn Kim, Mohammad Masudur Rahman and Laila Arjuman Ara

– The purpose of this paper is to investigate the potential economic effects of the proposed Bangladesh-India free trade agreement (FTA).

Abstract

Purpose

The purpose of this paper is to investigate the potential economic effects of the proposed Bangladesh-India free trade agreement (FTA).

Design/methodology/approach

The authors have used the computable general equilibrium (CGE) analysis of Global Trade Analysis Project (GTAP) database. The analysis highlights the possible costs and benefits of the two nations within three different scenarios. Under Scenario I all bilateral import tariffs between Bangladesh and India are removed; Scenario II represents the setting where Bangladesh cuts its all tariffs by 75 and in Scenario III Bangladesh cuts tariffs by 50 percent. India cuts all their tariffs by 100 percent in all three scenarios.

Findings

The findings indicate that India may gain more in terms of welfare and real GDP via the improved terms of trade while Bangladesh is going to have welfare loss, but if Bangladesh is able to make a preferential FTA like Scenario III with India its welfare, real GDP and exports will be increased substantially.

Originality/value

This paper is the first-ever attempt to estimate the effect of the proposed Bangladesh-India FTA using CGE analysis of GTAP database version 7.

Details

South Asian Journal of Global Business Research, vol. 3 no. 2
Type: Research Article
ISSN: 2045-4457

Keywords

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Book part
Publication date: 7 June 2013

Bruno Henry de Frahan and Nicodème Nimenya

This chapter investigates to what extent private and public European food safety standards affect European imports of a key high-value horticultural product such as green…

Abstract

This chapter investigates to what extent private and public European food safety standards affect European imports of a key high-value horticultural product such as green beans from Kenya. First, we estimate the ad valorem tariff equivalents of these nontariff measures (NTMs) for the main European importing countries using an extension of the price-wedge method. Second, we embed these estimated tariff equivalents into a gravity model. We find that the trade effects of these measures during the period 1990–2011 move from being positive in the beginning of the period to being increasingly negative from 1995 until 2003 and then tend to vanish at the end of the period as if Kenyan suppliers have progressively adjusted their trade to these NTMs. We also show that the establishment of the Common Market for Eastern and Southern Africa and the East African Community stimulates that trade with European countries.

Details

Nontariff Measures with Market Imperfections: Trade and Welfare Implications
Type: Book
ISBN: 978-1-78190-754-2

Keywords

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Abstract

Details

Freight Transport Modelling
Type: Book
ISBN: 978-1-78190-286-8

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Book part
Publication date: 21 October 2019

Moritz Kath and Natalia Ribberink

The promotion of low tariffs and free trade has been the underlying driver of global economic growth. The recent political developments in the United States and Great…

Abstract

The promotion of low tariffs and free trade has been the underlying driver of global economic growth. The recent political developments in the United States and Great Britain calls into question, whether free trade will be supported by the governments of the industrialized world in the future. Shortly after being inaugurated in 2017, the President of the United States has repeatedly announced his plans to impose punitive tariffs on the import of foreign products in order to protect the country’s domestic economy. Besides a controversial border adjustment tax, he has frequently brought up the possibility of imposing a 35% tariff on automobile imports. The chapter aims to analyze the effects of such a tariff on trade in the automotive sector between the United States and Germany as well as on German automobile manufacturers. It takes a quantitative approach to draw a conclusion about the relationship between import tariffs on automobiles and passenger vehicle imports from Germany to the United States utilizing a fixed effects regression model based on panel data. The model finds a significant negative correlation between the examined variables, but even in a worst case scenario, German manufacturers are resilient to the predicted revenue losses caused by a tariff increase.

Details

International Business in a VUCA World: The Changing Role of States and Firms
Type: Book
ISBN: 978-1-83867-256-0

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Book part
Publication date: 24 September 2010

Joseph F. Francois and Will Martin

Most current modeling approaches identify very small gains from trade reform. In this chapter, we examine recent developments in the literature to assess whether standard…

Abstract

Most current modeling approaches identify very small gains from trade reform. In this chapter, we examine recent developments in the literature to assess whether standard modeling approaches are mis-specifying, understating, or overstating the gains from trade reform. Key areas where the impacts of trade barrier reduction appear to be understated include the measurement of barriers; the aggregation of these barriers; process productivity gains, particularly those resulting from reallocation of resources between firms; product quality improvements and expansion of product variety; factor supply; and investment of gains from trade.

Details

New Developments in Computable General Equilibrium Analysis for Trade Policy
Type: Book
ISBN: 978-0-85724-142-9

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Book part
Publication date: 24 September 2010

Lorenzo Caliendo and Fernando Parro

This chapter applies the new heterogeneous firm CGE model of Caliendo and Parro (2009) to determine what the Ricardian gains are from changing partners for members of a…

Abstract

This chapter applies the new heterogeneous firm CGE model of Caliendo and Parro (2009) to determine what the Ricardian gains are from changing partners for members of a trade bloc. We focus on the MERCOSUR case, using a model with 48 sectors and 5 countries. Motivated by recent policy discussions, we quantify Uruguay's trade and welfare effects from signing a Free Trade Agreement with the United States and leaving MERCOSUR. We find positive welfare effects for Uruguay from bilaterally reducing tariffs with the United States. Most of the gains come from having access to lower-cost intermediate inputs for production. We then consider the policy experiment of bilaterally eliminating tariffs between all members of MERCOSUR and the United States. We find that Uruguay has the largest gains, while Argentina and Brazil do not benefit much. This chapter also illustrates how new models are a promising tool for the analysis of trade.

Details

New Developments in Computable General Equilibrium Analysis for Trade Policy
Type: Book
ISBN: 978-0-85724-142-9

Keywords

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