Journal ArticleDOI
Factor Price Distortions, Resource Allocation, and Growth: A Computable General Equilibrium Analysis
Jene K. Kwon,Hoon Paik +1 more
TLDR
In this paper, the welfare cost of both labor and capital market distortions in South Korea using a computable general equilibrium model was investigated and the results showed that removing labor market distortions would increase output by less than 1% of the base year GDP.Abstract:
The present paper estimates the welfare cost of both labor and capital market distortions in South Korea using a computable general equilibrium model and expands on earlier studies by distinguishing autonomous differentials from distortions in accounting for differences in sectoral wages and returns to capital. The results of this paper cast doubt on the generality of the proposition on the sensitivity of economic efficiency to market distortions. Our results show that removing labor market distortions would increase output by less than 1% of the base year GDP. Even when capital market distortions are also removed, the GDP increases only by 3.2%, and welfare by 5.6%. The study also examines a consequence of capital market distortions which suggests that distortions may lead to more rapid capital formation and higher concentration of capital stock. Given the industrial policy configuration in Korea, we find that financial incentives had more distorting effects than fiscal incentives. Copyright 1995 by MIT Press.read more
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Journal ArticleDOI
The East Asia challenge to neoclassical orthodoxy
TL;DR: The East Asian Miracle: Economic Growth and Public Policy as discussed by the authors concludes that East Asian economic success has little to do with government and that industrial policies used in East Asian economies have been effective, non-neoclassical tools for economic development.
Journal ArticleDOI
Linking dynamic economic and ecological general equilibrium models
David Finnoff,John Tschirhart +1 more
TL;DR: In this article, a general equilibrium bioeconomic model is introduced to account for how the two services are impacted by interactions within an eight-species ecosystem and interactions within a regional economy.
Journal ArticleDOI
The East Asian model of economic development
Jene K. Kwon,Jung Mo Kang +1 more
TL;DR: In this paper, the authors propose a model of the transition from a backward economy to an industrial economy in East Asia based on policy-augmented human capital (PAHC) with a road map for development led by a capable leader.
Posted Content
Industrial Policies and Growth: Lessons from International Experience
Marcus Noland,Howard Pack +1 more
TL;DR: This paper found evidence to support that economic growth was due to strong macroeconomic foundations, such as fiscal discipline, controlled inflation and adequate real exchange rate levels, which were the driving forces that created high levels of saving and investment.
Posted ContentDOI
Structural Change and Agricultural Protection: Costs of Korean Agricultural Policy, 1975 and 1990
TL;DR: In this article, the authors evaluate the opportunity cost of agricultural protection in South Korea and show that although agriculture's share of the gross domestic product (GDP) declined between 1975 and 1990, the cost of protecting agricultural protection did not fall.
References
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Some Cambridge Controversies in the Theory of Capital
TL;DR: In this paper, various topics associated with the exchanges between the 'neo-Keynesians' and the 'Neo-neoclassical' are discussed and evaluated.
Journal ArticleDOI
Domestic Distortions, Tariffs and the Theory of Optimum Subsidy
TL;DR: In this article, the use of tariffs when domestic distortions exist is discussed. But the main question is not whether a tariff policy necessarily superior to any other form of trade policy, but rather whether the choice can be made from the entire range of policy instruments, which is the optimal economic policy.
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