John Rowse

Peer Group Effects and Educational Attainment

Given the aims of an educational system, the relationship between inputs and output, a distribution of student ability, and a fixed budget, how should students and expenditures be allocated over classrooms? This paper focuses on peer effects and the determinants of whether streaming or mixing is preferable. The efficient allocation is highly sensitive to the form in which peer group effects enter. This emphasizes the need for flexible functional forms in estimating educational production functions.

Market mechanisms and the efficient allocation of surface water resources in southern Alberta

Abstract Population growth and economic expansion increasingly are stressing water resources in southern Alberta, Canada. Adopting market mechanisms may improve water use efficiency. Utilizing a novel network model of an entire river basin, we quantify the short-run efficiency gains (over one growing season) from reallocating surface water. Employing a standard welfare maximizing objective, and observing essential institutional and hydrologic structures, we find the relative efficiency gains from introducing market pricing to be under 3% for a year of surplus water flows, about 6% for a mean flow year, and more than 15% for a drought flow year. Although such gains exclude the costs of the current water allocation policy, as well as those of moving to market pricing, results tend to support the present cautious approach by the Alberta government to modify the mechanisms for allocating surface water.

Measuring Bank Branch Efficiency Using Data Envelopment Analysis: Managerial And Implementation Issues

Abstract Data Envelopment Analysis (DEA) is used to assess the efficiency of branches of a major Canadian bank (“Canbank”). First, a DEA model of American branch bank efficiency is utilized to build a model with Canbank data, then model outcomes are compared to the outcomes of the US study and the differences explained. Subsequently, the model is revised to represent the particular circumstances of Canbanks western, urban branches. Differences in outcomes between the revised model and the initial model are identified, then analysis with the revised model is conducted. Observations on implementing DEA in a work environment are also provided.

Canadian interregional electricity trade. Analysing the gains from system integration during 1990-2020

Abstract Using a multiperiod multiregional linear programming model of Canadian electric power supply allowing for technology choice and power transmission, we estimate the long-term gains from interregional trade in electrical energy. Measured in terms of supply cost reduction, these gains are substantial in absolute terms but proportionately small — about 5%. Other performance measures, however, such as aggregate coal consumption, uranium consumption, nuclear capacity expansion, and plant capital costs vary considerably between self-sufficiency for each region and complete interregional supply integration. Alternative objectives to minimum supply costs therefore acquire greater importance for selecting a socially optimal degree of regional cooperation.

Does an Exhaustible Resource Usually Have Many Near-Optimal Depletion Paths?

In a recent article Chapman finds that different depletion paths for a highly abstract world oil model yield objective function values close to the optimal level. In this article the near optimality of Chapmans marginal cost pricing solution is explained and many other near-optimal solutions to his competitive model are identified. Furthermore, evidence is cited that multiple near optima emerge from numerical exhaustible resource models incorporating several important real-world complexities and reasons for this occurrence are provided. The principal implications for public policy and economic theory are also discussed.

Measuring the user costs of exhaustible resource consumptions

Abstract In this paper non-linear programming is employed to measure the user costs of exhaustible resource consumption. First, a three-period model of resource depletion is analyzed to derive two user costs discussed in the literature. Simple complications imply that user costs cannot be measured uniquely and eliminate general assertions about the intertemporal behaviour of prices and user costs. Subsequently a natural gas model is formulated and solved numerically. Included are an export market, specific resource recovery profiles and rising unit capital costs of supply. In the Base Case domestic prices rise monotonically to the backstop price, and user costs of existing gas supplies rise in step with prices. By contrast, user costs of new supplies at the margin first rise, reach a maximum, then fall to zero with the introduction of the backstop technology. In two other cases the export market is responsible for a flat segment in the rising domestic price path and. along with capital costs, irregular behaviour of user costs of new supplies at the margin.

On ad valorem taxation of nonrenewable resource production

Abstract Taxing a nonrenewable resource typically shifts production through time, compresses the economically recoverable resource base and shrinks social welfare. But by how much? In this paper a computational model of natural gas use, representing numerous demand and supply features believed important for shaping efficient intertemporal allocations, is utilized to answer this question under different ad valorem royalty taxes on wellhead production. Proportionate social welfare losses from fixed royalties up to 30% are found to be small and the excess burden stands at less than 6.5% for a 30% royalty. This result replicates findings of several earlier studies and points to a general conclusion.

Natural resource programming models and scarcity rents

Abstract Many recent energy policy models have employed mathematical programming methods for integrating crude energy extraction, refining and/or consumption. In this paper we develop and discuss three mathematical programming model formulations of natural resource allocation — subsuming energy resource allocation as a special case — to illustrate how natural resource issues can be addressed in a common analytical framework. Particular features of our formulations are the spatial dispersion of resource endowments and the allowance for joint outputs in production, for differing efficiencies in resource processing between regions or for differing resource quality over space. We focus specific attention on resource scarcity rents emerging from our programming models and demonstrate that they embody a host of elements demanded by economic theory and intuition.

Constructing a supply function for a depletable resource

Abstract Estimating a supply function for a depletable resource is seriously complicated by the opportunity costs of foregone future consumption, or the user costs of consumption. User costs are central to determining efficient intertemporal allocations and their measurement entails choosing optimal consumption levels over time. In this paper non-linear programming is employed to construct a supply function for natural gas taking full allowance for user costs. The method allows for such considerations as future demands, export prospects, resource recovery profiles and rising unit capital costs of supply. For comparison purposes a supply function is also constructed using an altered discount rate.

Optimal intertemporal supplies of crude oil and natural gas for Canada

Abstract Several circumstances complicate determination of an optimal depletion path for an exhaustible resource. For Canadian crude oil and natural gas, these include the importance of a multiregional perspective, the presence of import or export options, supply options with particular recovery profiles, and the differing demand-supply circumstances of light/medium crude and heavy crude. In this paper twelve conclusions are drawn regarding optimal, supplies of oil and gas for Canada using an intertemporal optimization model allowing for these and other considerations. Canadian prices and demands are based on world oil prices, which surge toward the end of the 1980s, fall subsequently, then rise later. The most important finding is that crude oil supplies are sensitive to supply costs and the discount rate, and there are many near-optimal depletion patterns. Non-efficiency performance criteria therefore acquire greater importance for selecting a socially optimal depletion path. These conclusions appear applicable to other countries with indigenous oil and gas supply prospects.