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Welfare Implications (welfare + implication)
Selected AbstractsSUBSIDY IN LICENSING: OPTIMALITY AND WELFARE IMPLICATIONS*THE MANCHESTER SCHOOL, Issue 3 2005CHUN-HSIUNG LIAO This paper shows that subsidy can naturally emerge as part of the equilibrium strategy of an innovator of a cost-reducing innovation in a Cournot oligopoly when the innovator is endowed with combinations of upfront fee and royalty. It is further shown that there are robust regions where the social welfare is higher in subsidy-based licensing compared to the regime where licensing involving subsidy is not allowed. The analysis is carried out for both outsider and incumbent innovators. [source] Partial Ordering of Unpredictable Mobility with Welfare ImplicationsECONOMICA, Issue 299 2008DANNY BEN-SHAHAR We propose a partial ordering of ,unpredictable mobility' in the spirit of Blackwell's ordering of information structures. The proposed ordering ranks mobility matrices according to the degree to which elements in a given set are likely to move from one state to another, independently of their origin. Furthermore, for an important class of transition structures, our proposed ordering implies ordering, thus carrying significant welfare implications. Moreover, whenever it exists, our partial ordering functions as a sufficient condition for a class of renowned mobility measures and thereby generates, for a subset of transition matrices, unanimous ranking among mobility indices that are not generally consistent with one another. [source] On the Welfare Implications of Customs Unions in the Presence of Finance ConstraintsTHE MANCHESTER SCHOOL, Issue 2 2001Theodore Palivos We examine the welfare effects of a customs union on a small monetary economy. The role of money is captured by a generalized cash-in-advance constraint which allows for non-uniform monetization across sectors. This generates a demand-side distortion which results in a discrepancy between the marginal domestic rate of substitution and the world price. We show that, depending on the economy's inflation rate and the difference between the existing and the optimal tariff rate, trade creation may reduce welfare while trade diversion may improve it. [source] Welfare Implications of EU Enlargement under the CAPCANADIAN JOURNAL OF AGRICULTURAL ECONOMICS, Issue 4 2008Troy G. Schmitz The qualitative impacts of European Union (EU) enlargement on intervention prices, variable import levies, and export restitution payments for cereal under the Common Agricultural Policy (CAP) are analyzed using a partial equilibrium framework for EU cereal crops. The welfare implications are developed for both a net exporter and net importer. Consumer surplus, producer surplus, government revenue, and total welfare are compared and contrasted for the EU and the new entrant, both before and after enlargement. Dans le présent article, les répercussions qualitatives de l'élargissement de l'UE sur les prix d'intervention, les prélèvements variables à l'importation et les paiements de restitution à l'exportation des céréales dans le cadre de la Politique agricole commune (PAC) sont analysés à l'aide d'un modèle d'équilibre partiel pour les cultures céréalières de l'UE. Les répercussions sur le bien,être sont élaborées dans le cas d'un exportateur net et d'un importateur net. Le surplus des consommateurs, le surplus des producteurs, les recettes publiques et le bien,être total sont comparés pour l'UE et le nouveau venu, et ce, avant et après l'élargissement de l'UE. [source] Time allocation within the Family: Welfare implications of life in a couple,THE ECONOMIC JOURNAL, Issue 516 2007Hélène Couprie A collective model of leisure demand, generalised to the production of a household public good, is estimated on the British Household Panel Survey. The sharing rule is identified by using an original parametric framework based on the change of family status: from single-living to couple or from couple to single-living. Womens' ratios of private household expenditures are 40% on average. The level of intra-household inequality appears highly dependent on the intra-household wage gap. Omitting household production in the model would overestimate the ratio by 7 percentage points on average. [source] An Economic Model of Friendship: Homophily, Minorities, and SegregationECONOMETRICA, Issue 4 2009Sergio Currarini We develop a model of friendship formation that sheds light on segregation patterns observed in social and economic networks. Individuals have types and see type-dependent benefits from friendships. We examine the properties of a steady-state equilibrium of a matching process of friendship formation. We use the model to understand three empirical patterns of friendship formation: (i) larger groups tend to form more same-type ties and fewer other-type ties than small groups, (ii) larger groups form more ties per capita, and (iii) all groups are biased towards same-type relative to demographics, with the most extreme bias coming from middle-sized groups. We show how these empirical observations can be generated by biases in preferences and biases in meetings. We also illustrate some welfare implications of the model. [source] Partial Ordering of Unpredictable Mobility with Welfare ImplicationsECONOMICA, Issue 299 2008DANNY BEN-SHAHAR We propose a partial ordering of ,unpredictable mobility' in the spirit of Blackwell's ordering of information structures. The proposed ordering ranks mobility matrices according to the degree to which elements in a given set are likely to move from one state to another, independently of their origin. Furthermore, for an important class of transition structures, our proposed ordering implies ordering, thus carrying significant welfare implications. Moreover, whenever it exists, our partial ordering functions as a sufficient condition for a class of renowned mobility measures and thereby generates, for a subset of transition matrices, unanimous ranking among mobility indices that are not generally consistent with one another. [source] Efficiency Gaps, Love of Variety and International TradeECONOMICA, Issue 269 2001Catia Montagna We develop a general equilibrium monopolistic competition model of trade with technical heterogeneity among firms and countries. With free entry, technical asymmetries between firms result in the endogenous determination of the equilibrium average efficiency of the industry. We show that trade reduces (increases) the minimum efficiency required to survive in the more (less) efficient country. This has important welfare implications: (1) Contrary to the constant elasticity of substitution homogeneous-firms model, trade affects welfare even when there is no love of variety. (2) There are circumstances in which trade liberalization leads to a loss of consumer welfare. [source] Caught in a Trap?ECONOMICA, Issue 268 2000Wage Mobility in Great Britain: 197 In this paper I study wage mobility in Great Britain using the New Earnings Surveys of 1975,94 and the British Household Panel Surveys of 1991,94. Measuring mobility in terms of decile transition matrices, I find a considerable degree of immobility within the wage distribution from one year to the next. Mobility is higher when measured over longer time periods. Those in lower deciles in the wage distribution are much more likely to exit into unemployment and non-employment. Measuring mobility by studying changes in individuals' actual percentile rankings in the wage distribution, I find evidence that short-run mobility rates have fallen since the late 1970s. This has potentially important welfare implications, given the rise in cross-section earnings inequality observed over the last two decades. [source] Clinical dental examinations of 357 donkeys in the UK.EQUINE VETERINARY JOURNAL, Issue 4 2009Part 2: Epidemiological studies on the potential relationships between different dental disorders, between dental disease, systemic disorders Summary Reasons for performing study: Dental disease has been shown to be a risk factor for weight loss and colic in horses. No extensive clinical studies in donkeys have investigated the potential relationship between different dental disorders, or between dental disease and systemic disorders. Objectives: To determine possible associations between dental disease and body condition score, weight loss, the need for supplemental feeding and prevalence of colic in donkeys of all ages, and to gain a better understanding of the pathogenesis of dental disease by the determination of associations between different dental disorders. Methods: A prospective cross-sectional analysis of clinical dental examinations of 357 donkeys in The Donkey Sanctuary, Sidmouth was performed. Other epidemiological factors such as estimated age group, body condition score, weight loss, medical history and supplemental feeding were also recorded, and multiple regression analyses were performed to determine possible associations. Results: Donkeys from older age groups were more likely to have dental disease, poor body condition score and suffered previous colic episodes. The presence of dental disease was also significantly associated with weight loss, colic, low body condition score and the need for supplemental feeding. The presence of diastemata, periodontal disease, wave mouth, smooth mouth and step mouth are frequently associated with the presence of other dental disorders. Conclusions: In addition to oral-related pain, dental disease can cause significant systemic disorders and so has increased welfare implications in donkeys. Some dental disorders promote the development of other types of dental abnormalities and thus increase the severity of dental disease in individual animals. Potential significance: Effective treatment of dental disorders slows down the progression of dental disease and decreases the risk of developing some medical disorders such as colic and weight loss that are associated with dental disease. [source] Post mortem survey of dental disorders in 349 donkeys from an aged population (2005,2006).EQUINE VETERINARY JOURNAL, Issue 3 2008Part 1: Prevalence of specific dental disorders Summary Reasons for performing study: Donkey dental disorders are being recognised with increased frequency worldwide and have important welfare implications; however, no detailed investigations of dental disorders in donkeys appear to have been published. Objectives: To determine the prevalence of specified dental disorders in donkeys by performing a prospective post mortem study on donkeys that were subjected to euthanasia or died for other reasons at the Donkey Sanctuary, UK. Methods: Post mortem examinations were performed on 349 donkeys over an 18 month period, 2005,2006. The presence and extent of specified dental disorders were recorded and these data analysed to determine their prevalence and common locations. 45Results: A high prevalence (93%) of disorders was noted in the population with a median age of 31 years. In particular, cheek teeth diastemata (85% prevalence) were very common, often associated with advanced periodontal disease. Other disorders observed included missing teeth (in 55.6% of donkeys), displaced teeth (43%), worn teeth (34%), local overgrowths (15%), focal sharp overgrowths (3%) and dental-related soft tissue injuries (8%). Conclusions and potential relevance: Aged donkeys have a high prevalence of significant dental disease, especially cheek teeth diastemata. These findings highlight the importance of routine dental examinations and prophylactic dental treatments to improve the dental health and welfare of donkeys. [source] Labor Taxation in Search Equilibrium with Home ProductionGERMAN ECONOMIC REVIEW, Issue 4 2002Bertil Holmlund Conventional models of equilibrium unemployment typically imply that proportional taxes on labor earnings are neutral with respect to unemployment as long as the tax does not affect the replacement rate provided by unemployment insurance, i.e. unemployment benefits relative to after,tax earnings. When home production is an option, the conventional results may no longer hold. This paper uses a search equilibrium model with home production to examine the employment and welfare implications of labor taxes. The employment effect of a rise in a proportional tax is found to be negative for sufficiently low replacement rates, whereas it is ambiguous for moderate and high replacement rates. Numerical calibrations of the model indicate that employment generally falls when labor taxes are raised. [source] A Theory of Migration as a Response to Relative DeprivationGERMAN ECONOMIC REVIEW, Issue 2 2000Oded Stark We model migration as a response to relative deprivation. We present a specific configuration of incomes in which the process of migration in response to relative deprivation reaches a steady state. However, for the general configuration of incomes we show that it is impossible to prove the existence of a steady state. We study the social welfare implications of the two cases and show that if individuals are left to pursue their betterment, the resulting state falls short of the best social outcome. We present several implications of the model including federalism and the demand for secession. [source] Rethinking Social Security in Latin AmericaINTERNATIONAL SOCIAL SECURITY REVIEW, Issue 2-3 2005Indermit Gill In the past decade, many Latin American governments have radically restructured their old age income security systems, following the lead of Chile, which undertook its major pension reform in 1981. The defining characteristic of the reforms has been a shift in the basis of public pensions from social to individual responsibility: instead of the widely used system that "collectivized" or pooled the risk of being without the capacity to earn while aged, numerous countries in the region have adopted a system that relies on individual savings accounts. The reforms have maintained a role for a modified version of public pooling; this combination of individual and social savings to finance pensions is known as the "multipillar" approach. This article is based on a report prepared for the Office of the Chief Economist of the Latin America and Caribbean Region of the World Bank (Gill, Packard and Yermo, 2004).1 The report recognizes that the system of individual accounts, the essential aspect of the reform, has been a necessary and positive development, and one that is consistent with the economics of insurance and social welfare objectives. Beyond this recognition, however, the results of reform are much more complex. Each country has implemented its own version of the multipillar system. The article therefore draws on country evidence in order to determine: How has the new approach to public pensions in Latin America fared? In particular, have the changes left workers and their families in reform countries better off? The first section provides a brief description of the reforms. The second discusses the main macroeconomic concerns and effects. The third describes the impact on coverage levels, and other social welfare implications. The fourth evaluates the stagnation of coverage levels and presents various possible explanations. The fifth makes specific proposals to improve the multipillar pension system in Latin America. The last section concludes. [source] A Case for Bundling Public Goods ContributionsJOURNAL OF PUBLIC ECONOMIC THEORY, Issue 3 2007SUMAN GHOSH We extend the model of voluntary contributions to multiple public goods by allowing for bundling of the public goods. Specifically, we study the case where agents contribute into a common pool which is then allocated toward the financing of two pure public goods. We explore the welfare implications of allowing for such bundling vis-à-vis a separate contributions scheme. We show that for high income inequality or for identical preferences among agents bundling leads to higher joint welfare. Interestingly, a welfare improvement can in some cases occur despite a decrease in total contributions. On the contrary, when agents are heterogenous, for low income inequality bundling can lead to lower total contributions and may decrease welfare compared to a separate contribution scheme. Our findings have implications for the design of charitable institutions and international aid agencies. [source] Welfare Economics with Intransitive Revealed Preferences: A Theory of the Endowment EffectJOURNAL OF PUBLIC ECONOMIC THEORY, Issue 2 2006H. LORNE CARMICHAEL Economists use the standard rational model to predict behavior after a policy change and to determine the policy's welfare implications. Recent experimental observations are casting doubt on the predictive accuracy of the standard model, but the more realistic behavioral alternatives often provide a poor basis for making normative evaluations. This paper suggests that we can still predict behavior and measure welfare within the same model. We show that optimizing agents with standard preferences will in some cases behave as if they are subject to an endowment effect. Even so, we may still be able to uncover information about their preferences. [source] Spatial Pricing Policies Reconsidered: Monopoly Performance and LocationJOURNAL OF REGIONAL SCIENCE, Issue 4 2001Lin-Ti Tan This paper reexamines the welfare implications of three pricing regimes (mill, uniform, and discriminatory) for a monopoly. Assuming linear demand and constant marginal costs, I show that with the introduction of endogenous location choice, uniform delivered pricing may provide the highest social welfare when demands in different markets are sufficiently heterogeneous; whereas discriminatory pricing always dominates uniform pricing when demands in different markets are similar. [source] An Introduction to Spatial DiscountingJOURNAL OF REGIONAL SCIENCE, Issue 1 2001Charles Perrings Research on the valuation of environmental externalities shows that decision makers tend to discount not only over time but across space. Just as time discounting has implications for intergenerational equity, geographical or spatial discounting has implications for intragenerational equity. Similarly, just as positive time discount rates are warranted by positive net rates of growth of the capital stock, positive spatial discount rates may be warranted by the fact that enviironmental (or other external effects of economic activity are diffused at positive rates. This paper introduces the notion of spatial discounting and explores its welfare implications through a simple diffusion model. [source] Efficiency-wage Unemployment and Economic Welfare in a Model of Endogenous GrowthLABOUR, Issue 4 2001Jürgen Meckl This paper examines positive and normative implications of efficiency-wage-induced unemployment within a model of endogenous growth. Sector-specific impacts of the wage rate on labour efficiency establish a correlation between the growth rate and the rate of unemployment. The sign of this correlation is determined by the intersectoral wage differential. Despite the existence of unemployment, decisive positive properties of the full-employment model are preserved. However, welfare implications of the full-employment model may be reversed. The optimal policy can be to reduce growth, while at the same time raising unemployment. [source] The Welfare Effects of the National Cooperative Research Act (NCRA) of 1984 and the National Cooperative Production Amendments (NCPA) of 1993AMERICAN JOURNAL OF ECONOMICS AND SOCIOLOGY, Issue 5 2007Yi Liu Cooperative R&D and production joint ventures may enable firms to achieve significant cost efficiencies. However, they can also be a means of controlling industry output and raising product prices. A review of the literature on the welfare implications of allowing rival firms to cooperate in the R&D and production stages indicates that the issue is controversial from a theoretical perspective. There is need to examine the motivations of R&D and production joint ventures in order to assess the welfare implications of the National Cooperative Research Act (NCRA) of 1984 and National Cooperative Production Amendments (NCPA) of 1993, which relaxed the antitrust treatment of R&D and production joint ventures. Using samples of 127 cooperative R&D joint ventures and 342 cooperative production joint ventures announced by U.S. domestic firms during 1979,1999, this article finds that these endeavors do not meet the criteria for collusive behavior specified by the market power doctrine. We interpret these findings as suggesting that cooperative R&D and production joint ventures are motivated by cost efficiencies and are, therefore, welfare enhancing. Our results pose some challenges to the doctrine that antitrust actions by regulatory authorities are always welfare improving. [source] LICENSING CONTRACT IN A STACKELBERG MODEL,THE MANCHESTER SCHOOL, Issue 5 2005LUIGI FILIPPINI We study optimal linear licensing and its social welfare implications when the innovator (patentee) is an insider that can make capacity/output commitment so as to act as a Stackelberg leader in the output market. We show that (i) the patentee's profit-maximizing licensing contract is a royalty; (ii) the optimal royalty rate is greater than the cost reduction attained by the licensed technology and is increasing in the number of competitors; (iii) optimal licensing maximizes the likelihood of technology transfer, may reduce social welfare and always makes consumers worse off; and (iv) the innovator benefits from capacity commitment, and the more competitive the output market, the greater the gains it makes by licensing. The opposite holds for consumers. [source] Science and its application in assessing the welfare of laying hens in the egg industryAUSTRALIAN VETERINARY JOURNAL, Issue 10 2003JL BARNETT Objective To provide a rational framework for the scientific assessment of welfare and to use this framework to assess the welfare implications of issues relevant to the Australian egg industry. Procedure A well-accepted approach to the assessment of animal welfare, based on assessing how well the animal is adapting, is described. This approach is used to consider the welfare implications of issues such as space, perches, nest boxes, dust baths, abrasive strips and non-cage housing systems. Conclusions The role of science in the welfare debate is to provide biological facts and thus it is important to separate welfare and ethics. The welfare of an animal in response to a housing system or husbandry procedure can be assessed by evaluating how much has to be done by the animal in order to cope and the extent to which the coping attempts are succeeding. Using this approach there is evidence for improved welfare from increasing space in cages, based on reduced aggression, corticosterone concentrations and mortalities and increased production, and for incorporating perches, based on the reduction in injuries at depopulation. Similar evidence for the inclusion of dust baths and nest boxes is lacking. The data on abrasive strips are equivocal with recommendations from overseas for their inclusion, whereas some local data have shown an increase in mortality can occur. Similarly, the data on non-cage systems are equivocal. The data on bone strength suggest improved fitness in non-cage systems, the data on stress suggest fitness may be better, similar or worse in non-cage systems, and the limited data on immunology suggest fitness may be worse in non-cage systems than in conventional cages. [source] | ||||||||||||||||