ENERGY

Editorial and publication support for report on risk management
Editorial Information Administration

Under a purchase order contract with the U.S. Department of Energy, Econometrica has provided support for a report by the Energy Information Administration (EIA) in response to a request by the Secretary of Energy. The report explains how insurance, physical investment, and financial instruments traded on organized exchanges and the over-the-counter market are being used to manage risk. The report also reviews various controversies regarding accounting for risk, especially derivatives, the possibility of contagion, the impact of risk management on physical investment and the value of the firm, and the boundaries of regulation. The report is intended to help senior department officials and Congressional staff as they consider policy questions raised by Enron’s demise.

Econometrica prepared graphics, using data and rough designs provided by EIA; processed and formatted the text; edited the text to ensure the use of proper terminology and language, the logical flow of complex descriptions, and compliance with EIA publication standards and directives; ensured consistency among text, graphics, and tables; prepared the final publication-quality report for printing and electronic dissemination; suggested ways to make the report accessible to educated generalists, some of whom will make decisions about derivatives markets (Congressional staffers, high-level executive branch appointees, etc.); and suggested expositional devices that emphasize the major messages in a host of important details.