Central bank interventions and jumps in double long memory models of daily exchange rates
Abstract[eng] Transportation costs and monopoly location in presence of regional disparities. . This article aims at analysing the impact of the level of transportation costs on the location choice of a monopolist. We consider two asymmetric regions. The heterogeneity of space lies in both regional incomes and population sizes: the first region is endowed with wide income spreads allocated among few consumers whereas the second one is highly populated however not as wealthy. Among the results, we show that a low transportation costs induces the firm to exploit size effects through locating in the most populated region. Moreover, a small transport cost decrease may induce a net welfare loss, thus allowing for regional development policies which do not rely on inter-regional transportation infrastructures. cost decrease may induce a net welfare loss, thus allowing for regional development policies which do not rely on inter-regional transportation infrastructures. [fre] Cet article dÃ©veloppe une statique comparative de l'impact de diffÃ©rents scÃ©narios d'investissement (projet d'infrastructure conduisant Ã une baisse modÃ©rÃ©e ou Ã une forte baisse du coÃ»t de transport inter-rÃ©gional) sur le choix de localisation d'une entreprise en situation de monopole, au sein d'un espace intÃ©grÃ© composÃ© de deux rÃ©gions aux populations et revenus hÃ©tÃ©rogÃ¨nes. La premiÃ¨re rÃ©gion, faiblement peuplÃ©e, prÃ©sente de fortes disparitÃ©s de revenus, tandis que la seconde, plus homogÃ¨ne en termes de revenu, reprÃ©sente un marchÃ© potentiel plus Ã©tendu. On montre que l'hÃ©tÃ©rogÃ©nÃ©itÃ© des revenus constitue la force dominante du modÃ¨le lorsque le scÃ©nario d'investissement privilÃ©giÃ© par les politiques publiques conduit Ã des gains substantiels du point de vue du coÃ»t de transport entre les deux rÃ©gions. L'effet de richesse, lorsqu'il est associÃ© Ã une forte disparitÃ© des revenus, n'incite pas l'entreprise Ã exploiter son pouvoir de marchÃ© au dÃ©triment de la rÃ©gion l
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Empirical Finance.
Volume (Year): 10 (2003)
Issue (Month): 5 (December)
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Web page: http://www.elsevier.com/locate/jempfin
Other versions of this item:
- Michel Beine & Sébastien Laurent, 2003. "Central Bank interventions and jumps in double long memory models of daily exchange rates," ULB Institutional Repository 2013/10435, ULB -- Universite Libre de Bruxelles.
- BEINE, Michel & LAURENT, Sébastien, . "Central bank interventions and jumps in double long memory models of daily exchange rates," CORE Discussion Papers RP -1706, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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