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This paper introduces a model that integrates a Unit Commitment (UC) model, which performs the simulation of the day-ahead electricity market, combined with an econometric model that estimates the income and price elasticities of electricity demand. The integrated model is further extended to estimate the retailers’ profitability with demand responsive consumers. The applicability of the proposed model is illustrated in the Greek day-ahead electricity market. The model is designed to identify the effects of demand responsiveness to the fluctuations of spot prices, based on their short-term price elasticities. It provides price signals on the profitability of retailers/demand aggregators, when forming their tariffs. We argue that the non-linearity between demand response and evolution of wholesale price, inherits risk for retailers. This finding could lead even to losses for some time periods, affecting strongly their viability. The model provides useful insights into the risk of retailers from their price responsive customers and therefore acts as a pivotal study to policy makers and government officials (i.e. regulators, transmission and distribution system operators) active in the electricity market. [ABSTRACT FROM AUTHOR]

• Financial depth • Growth • Nonlinear effects • Semi parametric fixed effects model We investigate the impact of financial depth on economic growth by using a flexible semi parametric model allowing for fixed effects along the lines of Baltagi and Li (2002). The results are robust under the two finance measures (domestic credit to private sector and broad money) and shed new light on the finance-growth nexus. We argue that this relationship appears to be very weak and tentative even though mildly nonlinear, regardless of the specification of the parametric part of the model. [ABSTRACT FROM AUTHOR]