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Welfare Cost (welfare + cost)
Selected AbstractsA WELFARE COST OF THE LOST DECADE IN JAPANAUSTRALIAN ECONOMIC PAPERS, Issue 1 2010TATSUYOSHI MIYAKOSHI This paper measures the welfare cost of the Japanese economy in a ,lost decade' from 1990 to 2002, by using panels of different consumer groups. The paper finds that the costs for consumers in the lower and middle income quintiles and in urban districts are much higher, while there exists a benefit for consumers in rural districts. We suggest that such cost disparities express the business slump related to districts and income quintile group with high costs. Also, there exist consumers feeling this stagnation to be low-cost and the seriousness of stagnation is not recognised unanimously. [source] Discreteness and the Welfare Cost of Labor Supply Tax Distortions*INTERNATIONAL ECONOMIC REVIEW, Issue 3 2003Keshab Bhattarai We compare the welfare costs of tax distortions of labor supply in one- and two-member household discrete and continuous choice labor supply (leisure consumption) models calibrated to the same aggregate uncompensated labor supply elasticities. In the discrete models, taxes induce a large response from a subset of the population, whereas the majority of the population exhibits unchanged behavior. In contrast, the majority of the population reacts to tax changes in continuous models. Discrete choice matters as the welfare costs of similar taxes vary significantly when individuals face discrete labor supply choices from when they choose working hours continuously. [source] THE EFFECTS OF THE 1.03 MILLION YEN CEILING IN A DYNAMIC LABOR SUPPLY MODELCONTEMPORARY ECONOMIC POLICY, Issue 2 2009YUKIKO ABE In this paper I examine the effects of a means-tested transfer system in Japan ("1.03 million yen ceiling") in a dynamic labor supply model with endogenous retirement. In Japan, married women have reason to limit their annual earnings to no more than 1.03 million yen in order to receive a number of benefits available to low-income wives, and in fact often choose to do so. In a dynamic model, the optimal labor supply schedule follows a pattern that is not seen in a static framework, which I call the "spillover effect." The paper also examines the properties of dynamic welfare cost of this ceiling. (JEL J22, H24, H55) [source] Financial Innovation and the Transactions Demand for CashECONOMETRICA, Issue 2 2009Fernando Alvarez We document cash management patterns for households that are at odds with the predictions of deterministic inventory models that abstract from precautionary motives. We extend the Baumol,Tobin cash inventory model to a dynamic environment that allows for the possibility of withdrawing cash at random times at a low cost. This modification introduces a precautionary motive for holding cash and naturally captures developments in withdrawal technology, such as the increasing diffusion of bank branches and ATM terminals. We characterize the solution of the model, which qualitatively reproduces several empirical patterns. We estimate the structural parameters using micro data and show that quantitatively the model captures important economic patterns. The estimates are used to quantify the expenditure and interest rate elasticity of money demand, the impact of financial innovation on money demand, the welfare cost of inflation, and the benefit of ATM ownership. [source] Inflation and Welfare: A Search ApproachJOURNAL OF MONEY, CREDIT AND BANKING, Issue 1 2008BEN CRAIG inflation; search; money This paper uses a search model of monetary exchange to provide new insights for evaluating the welfare costs of inflation. We first show that the search model of money can rationalize the estimates of the welfare cost of inflation based on the "welfare triangle" methodology of Bailey (1956) and Lucas (2000) provided that buyers appropriate the social marginal benefit of their real balances. For other mechanisms, the measure given by the welfare triangle has to be scaled up by a factor that increases with sellers' market power. We introduce capital and endogenous participation decisions and study how the cost of inflation is affected. We provide calibrated examples in which a deviation from the Friedman rule is optimal. [source] The Marginal Costs and Benefits of Redistributing Income and the Willingness to Pay for StatusJOURNAL OF PUBLIC ECONOMIC THEORY, Issue 3 2006SAM ALLGOOD The effect of status on aggregate welfare is ambiguous for marginal reforms that redistribute income. If average consumption falls, the change in relative consumption increases household utility but reinforces the decrease in household labor supply, raising welfare cost. For parameterizations of the model developed here, reforms which lower average consumption increase aggregate welfare. Numerical calculations show that status increases marginal welfare cost and marginal net benefit for a demogrant reform. Redistributing to high income households may increase aggregate welfare depending on the definition of average consumption and if the willingness to pay for status increases with income. [source] A Welfare Loss Measure of Unemployment with An Empirical IllustrationTHE MANCHESTER SCHOOL, Issue 2 2001Satya Paul Based on interpersonal comparisons, a welfare loss measure of unemployment is developed. The proposed measure is additively decomposable which enables us to assess the group-specific contribution to aggregate welfare cost. It possesses certain other desirable properties. It is sensitive to unemployment rate, mean duration of unemployment and the relative differences in the duration of unemployment. Since all these can vary differently over the years and across regions, the proposed measure is most suitable for comparing the welfare cost of unemployment over a period of time or across regions. An empirical exercise based on the Australian labour force survey data illustrates the usefulness and an easy applicability of the proposed measure. [source] Consumer Perceptions of Commodity Characteristics: Implications for Choice and Well-beingTHE MANCHESTER SCHOOL, Issue 5 2000Martin Currie Consumers base market choices on beliefs about the properties of commodities. Invoking Lancaster's characteristics approach, we explore the implications for consumer well-being of such beliefs being incorrect. Following an examination of the welfare cost of inaccurate beliefs, we address the question: do more accurate beliefs necessarily result in greater well-being? The impacts of changes in prices and income on well-being are then explored and some implications are drawn for the use of compensating variation. Finally, we contrast alternative perspectives on what constitutes the appropriate measurement of welfare where consumers' beliefs about what they are actually consuming are mistaken. [source] A WELFARE COST OF THE LOST DECADE IN JAPANAUSTRALIAN ECONOMIC PAPERS, Issue 1 2010TATSUYOSHI MIYAKOSHI This paper measures the welfare cost of the Japanese economy in a ,lost decade' from 1990 to 2002, by using panels of different consumer groups. The paper finds that the costs for consumers in the lower and middle income quintiles and in urban districts are much higher, while there exists a benefit for consumers in rural districts. We suggest that such cost disparities express the business slump related to districts and income quintile group with high costs. Also, there exist consumers feeling this stagnation to be low-cost and the seriousness of stagnation is not recognised unanimously. [source] On the Endogenous Choice between Protection and PromotionECONOMICS & POLITICS, Issue 1 2000D. Mitra In a model of strategic interaction between firms in lobbying activity, I show that capitalists might prefer tariffs (protection) to production subsidies (promotion). This is due to the congestion problem arising from the government's convex welfare costs of providing subsidies as opposed to both the free-rider problem and the congestion problem acting in opposite directions in the case of tariffs. If an industry association exists, coordination can be achieved when lobbying for tariffs, but not in the case of production subsidies. [source] From ,Relief' to ,Justice and Protection': The Maintenance of Deserted Wives, British Masculinity and Imperial Citizenship, 1870,1920GENDER & HISTORY, Issue 2 2010Marjorie Levine-Clark In the early twentieth century, local British poor law guardians' concerns with the maintenance of deserted and neglected families were transformed into imperial, and later transnational, policy promoting justice for abandoned wives and children. Both local court cases concerning maintenance and policy debates at the national and imperial levels reveal the ways in which a breadwinner model of masculinity shaped maintenance policy and practice. Although the maintenance problem was framed differently by local welfare providers and imperial heads of state, concerns about welfare costs and human rights intersected in the figure of the irresponsible male citizen, who challenged the dominant model of British/imperial masculinity by refusing to maintain his wife. [source] Discreteness and the Welfare Cost of Labor Supply Tax Distortions*INTERNATIONAL ECONOMIC REVIEW, Issue 3 2003Keshab Bhattarai We compare the welfare costs of tax distortions of labor supply in one- and two-member household discrete and continuous choice labor supply (leisure consumption) models calibrated to the same aggregate uncompensated labor supply elasticities. In the discrete models, taxes induce a large response from a subset of the population, whereas the majority of the population exhibits unchanged behavior. In contrast, the majority of the population reacts to tax changes in continuous models. Discrete choice matters as the welfare costs of similar taxes vary significantly when individuals face discrete labor supply choices from when they choose working hours continuously. [source] Inflation and Welfare: A Search ApproachJOURNAL OF MONEY, CREDIT AND BANKING, Issue 1 2008BEN CRAIG inflation; search; money This paper uses a search model of monetary exchange to provide new insights for evaluating the welfare costs of inflation. We first show that the search model of money can rationalize the estimates of the welfare cost of inflation based on the "welfare triangle" methodology of Bailey (1956) and Lucas (2000) provided that buyers appropriate the social marginal benefit of their real balances. For other mechanisms, the measure given by the welfare triangle has to be scaled up by a factor that increases with sellers' market power. We introduce capital and endogenous participation decisions and study how the cost of inflation is affected. We provide calibrated examples in which a deviation from the Friedman rule is optimal. [source] Measuring the welfare costs of EU accessionTHE ECONOMICS OF TRANSITION, Issue 2 2001The case of VAT reform in Bulgaria We analyze possible reforms to the Bulgarian VAT system, evaluating revenue-neutral reallocations of goods to tax bands within the existing 2-rate structure. We investigate the sensitivity of the results to behavioural response and imperfect tax recovery. We find only a weak case for the use of non-uniform VAT rate structures for redistributional purposes. Selective VAT exemptions can produce approximate welfare gains equivalent to a general price fall of much less than 1 per cent for plausible specifications of social welfare. JEL classification: D31, J31, P24. [source] (Re)implementing the Agreement on Trade-Related Aspects of Intellectual Property Rights to Foster InnovationTHE JOURNAL OF WORLD INTELLECTUAL PROPERTY, Issue 5 2009Daniel J. Gervais This article considers the impact of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) in developing countries. After an initial phase of "paper compliance" with TRIPS, followed by efforts to manage the welfare costs of its implementation, a number of developing countries are looking at ways to optimize the implementation or reimplementation of the agreement to foster domestic competitiveness and innovation. One part of the equation involves attracting technology-intensive foreign direct investment. Another involves enhancing local innovation potential. Surfing the wave of outsourcing, which increasingly targets higher knowledge functions, a number of developing countries are becoming globally competitive innovators and displacing the geographical centres of innovation, with substantial political and economic impacts. [source] | ||||||||||||||||||||||