A NUMERICAL EXAMPLE OF THE PRACTICAL USE OF DUMMY VARIABLES

Research Methods/ Statistical Methods,

Principles of regulatory policy design

The author contrasts command-and-control regulation (tight control of water purification, for example) with more flexible forms, including incentive regulation (such as price cap regulation), potential regulation (providing for closer scrutiny if enough customers complain), and reactive rather than proactive policies (the firm proposing actions, the regulatory saying yes or no). He contrasts informing regulation (for example, requiring that consumers be informed about ingredients in a product) and enforcing regulation (for example, prohibiting the use of certain chemicals in foods). A country's institutional structure can limit the regulators'potential for commitment, he says -- especially if regulators are limited in their ability to deliver rewards or penalties. The scope and function of regulation may also be fairly limited when technological conditions allow competition to discipline producers. Sophisticated buyers with economic power may reduce the need for regulatory control, and rapid technological change can render comprehensive command-and-control regulation ineffective or debilitating. Many forces operate simultaneously, making regulatory design a complex undertaking. Inertia is one such influence. Regulatory policies that once served an important purpose sometimes persist even though they no longer serve that purpose -- sometimes because they favor a constituency that convinces the regulator to keep the control in place. Subsidies and tariff protection often continue long past the time needed to promote the development of an infant industry, for example. When there is limited public outcry against continuing the special treatment, and the affected firms strongly urge its continuance, the regulator may be convinced to continue special treatment that no longer serves the public interest. Regulation may also be affected by the regulators'personal ambition. When regulators are"captured"by regulated firms -- diverted from the goal of protecting consumers through the promise of personal rewards for favorable treatment of the firms -- regulation may not serve society's best interest. Even if regulators are not motivated by self-interest, their ideas of what is best for society may differ from those of other government officials or of society at large. When that happens, which goals are pursued depends largely on the autonomy regulators that are granted and on the balance of power among government bodies.Regulation should be viewed in this large context to be understood fully.Administrative&Regulatory Law,Environmental Economics&Policies,National Governance,Economic Theory&Research,Insurance&Risk Mitigation

Regulation, Competition and Liberalization

In many countries throughout the world, regulators are struggling to determine whether and how to introduce competition into regulated industries. This essay examines the complexities involved in the liberalization process. While stressing the importance of case-specific analyses, this essay distinguishes liberalization policies that generally are pro-competitive from corresponding anti-competitive liberalization policiesCompetition, Regulation, Liberalization

Regulation, competition, and liberalization

In many countries throughout the world, regulators are struggling to determine whether and how to introduce competition into regulated industries. This essay examines the complexities involved in the liberalization process. While stressing the importance of case-specific analyses, this essay distinguishes liberalization policies that generally are pro-competitive from corresponding anti-competitive liberalization policies

Population genetics strategies to characterize long-distance dispersal of insects

Population genetics strategies offer an alternative and powerful approach for obtaining information about long-distance movement, and have been widely used for examining patterns and magnitude of insect dispersal over geographic and temporal scales. Such strategies are based on the principle that genetic divergence between local populations reflects the interplay between genetic drift and gene flow, and thus can function as an indicator of dispersal capacity. Relatively new approaches for inferring population history are widely applicable for documenting introduction routes of invasive or quarantine species. These approaches are based on genetic variability calculated from changes in gene frequency of subpopulations, measured using molecular genetic markers. Inferences from population genetics can supplement and corroborate conventional observational approaches for characterizing insect dispersal and have provided important clues to many questions raised in the field of behavior and ecology of insects. Here, we summarize our work on the boll weevil as a case study to illustrate the kinds of information on dispersal capacity and dispersal patterns that can be obtained from population genetics techniques that would be difficult or impossible to acquire in other ways. Then we provide examples of how the molecular markers and population genetics tools have been applied to answer immediate questions of relevance to eradication program managers. Though the latter are idiosyncratic to this particular pest, they demonstrate the kinds and range of problems that can be addressed in other systems through application of population genetics strategies

Genetic Structuring of Western Corn Rootworm (Coleoptera: Chrysomelidae) Populations in the United States Based on Microsatellite Loci Analysis

The western corn rootworm (Diabrotica virgifera virgifera LeConte) (Coleoptera: Chrysomelidae) is a major corn insect pest in North America and is spreading in Europe. Seven polymorphic microsatellite loci were surveyed to characterize genetic structuring of D. v. virgifera populations, based on 595 individuals sampled from 10 locations across nine U.S. states (western Texas and Kansas to New York and Delaware). All populations showed high levels of genetic diversity, with mean allelic diversity ranging from 7.3 to 8.6, and mean expected heterozygosity ranging from 0.600 to 0.670. D. v. virgifera populations exhibited little genetic differentiation as a whole across the geographic range sampled, with a global FSTof only 0.006. Pairwise FST estimates also revealed little genetic differentiation among populations. Most pairwise FST values were nonsignificant, except for those estimated between the Texas population and all others. There was a positive correlation between genetic distance and geographic distance as a whole, but no significant correlation for populations from Kansas to the east coast. There was no evidence for a genetic bottleneck in any D. v. virgifera population sampled. Phylogenetic and principal component analyses support the picture of high genetic similarity over much of the United States. Although high migration rates could produce the same pattern and cannot be ruled out, it seems more likely that the D. v. virgifera populations sampled have had insufficient time for substantial genetic structuring to develop since its recent eastward range expansion from the Great Plains that began ≈50 yr ago

Isolation and characterization of polymorphic microsatellite loci in the boll weevil, Anthonomus grandis Boheman (Coleoptera: Curculionidae)

The boll weevil (Anthonomus grandis Boheman) is a major insect pest of cotton in North America. Dispersal activity poses a threat to ongoing eradication efforts in the US, but little is known about the frequency of long-distance migration. Nuclear molecular markers are needed to assess gene flow in relation to geographical distance. A biotin-enrichment strategy was employed to develop microsatellite markers for the boll weevil. Of 23 loci isolated, 14 were polymorphic with three to 10 alleles per locus. Twelve of the polymorphic loci showed Mendelian inheritance and are likely to be useful in population genetics studies

Genetic structuring of boll weevil populations in the US based on RAPD markers

Randomly amplified polymorphic DNA (RAPD) analysis was performed to infer the magnitude and pattern of genetic differentiation among boll weevil populations from eighteen locations across eight US states and north-east Mexico. Sixty-seven reproducible bands from six random primers were analysed for genetic variation within and between weevil populations. Genetic and geographical distances among all populations were positively correlated, reflecting a pattern of isolation by distance within a larger metapopulation. Gene flow between south-central, western and eastern regions is limited, but migration between locations within regions appears to be relatively frequent up to distances of ∼300–400 km. However, estimates of effective migration were much lower than those estimated from mtDNA-RFLP data reported previously

Incentives for Sabotage in Vertically Related Industries

We show that the incentives a vertically integrated supplier may have to disadvantage or "sabotage" the activities of downstream rivals vary with both the type of sabotage and the nature of downstream competition. Cost-increasing sabotage is typically profitable under both Cournot and Bertrand competition. In contrast, demand-reducing sabotage is often profitable under Cournot competition, but unprofitable under Bertrand competition. Incentives for sabotage can vary non-monotonically with the degree of product differentiation.Regulation, Vertical Integration, Access Pricing, Sabotage

Coordinated Diabrotica Genetics Research: Accelerating Progress on an Urgent Insect Pest Problem

This article is from American Entomologist 52 (2006): 90.</p