Showing papers by "World Institute for Development Economics Research published in 1997"
Posted Content•
TL;DR: In this paper, the impacts of environmental externalities on Pareto-efficient nonlinear income tax, proportional commodity taxes and public expenditure were analyzed using the self-selection approach to tax analysis, and the results indicated that while the externality's direct harmful impact raises marginal tax rates, the influence through the selfselection constraint tends to decrease the rise.
Abstract: Using the self-selection approach to tax analysis, the paper analyzes the impacts of environmental externalities on Pareto-efficient non-linear income tax, proportional commodity taxes and public expenditure. Consideration of externalities within this framework reveals intuitive insights into environmental tax policy, suggesting that some earlier conclusions drawn in the relevant literature might be misleading. The results indicate that, while the externality's direct harmful impact raises marginal tax rates, the influence through the self-selection constraint tends to decrease the rise. We also derive conditions under which the Pigovian tax can be determined purely on the basis of internalizing the externality.
68 citations
Posted Content•
TL;DR: This paper constructed a parsimonious empirical Ricardo-Viner model to analyze the same issue and found that the impact on US real wages is very small, and concluded that Batra's assertions are empirically unlikely.
Abstract: We examine results presented by Batra (1992) in an article, published in this Journal, entitled "The Fallacy of Free Trade." Batra contends that technical change in Japanese manufacturing necessarily reduces US real wages in the confines of a two good, two country Ricardo-Viner model. We construct a parsimonious empirical Ricardo-Viner model to analyze the same issue. We find that the impact on US real wages is very small. Systematic sensitivity analysis shows that increases in the real wage are as likely as decreases. We conclude that Batra's assertions are empirically unlikely.
20 citations
Posted Content•
TL;DR: This article analyzed the impact of continued rapid growth in China on her trading partners using a multiregion, applied general equilibrium model and found that most developing countries benefit from China's growth.
Abstract: This paper analyzes the impact of continued rapid growth in China on her trading partners using a multiregion, applied general equilibrium model. Contrary to conventional wisdom, we find that most developing countries benefit from China's growth. Product differentiation plays a key role in this finding. Systematic analysis of these welfare gains shows that, as expected, simple terms of trade calculations based on net trade positions and average world price changes predict a loss for the developing countries. However, with the exceptions of South Asia and Thailand, this loss is overshadowed by a positive movement in region-specific export price indices. Second-best effects also play a significant role in the gains for a number of the developing countries.
2 citations