Economics - Research Publications
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ItemWelfare‐Reducing Mergers in Differentiated Oligopolies with Free Entry(Wiley, 2010)https://doi.org/10.1111/j.1475-4932.2009.00612.x
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ItemSTOCHASTIC APPROACH TO INDEX NUMBERS FOR MULTILATERAL PRICE COMPARISONS AND THEIR STANDARD ERRORS(WILEY, 2010-06-01)The main objective of the paper is to demonstrate that a number of widely used multilateral index numbers for international comparisons of purchasing power parities (PPPs) and real incomes can be derived using the stochastic approach. The paper shows that price index numbers from commonly used methods like the Iklé, the Rao‐weighted, and an additive multilateral system are all estimators of the parameters of the country–product–dummy (CPD) model. The advantage of the stochastic approach is that we can derive standard errors for the estimates of the purchasing power parities (PPPs). The PPPs and the parameters of the stochastic model are estimated using a weighted maximum likelihood procedure under different stochastic specifications for the disturbance term. Estimates of PPPs and their standard errors for OECD countries using the proposed methods are presented. The paper also outlines a method of moments approach to the estimation of PPPs under the stochastic approach. The paper shows how the Geary–Khamis system of multilateral index numbers is a method of moments estimator of the parameters of the CPD model. The paper therefore provides a coherent stochastic framework for the Geary–Khamis system and derives standard errors of the Geary–Khamis PPPs.
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ItemInefficient policies and incumbency advantage(Elsevier, 2010)We present a model of (re)elections in which an incumbency advantage arises because the incumbent can manipulate issue salience by choosing inefficient policies in the policy dimension in which he is the stronger candidate. The voters are uncertain about the state of the world and the incumbent's choice of policy. Under complete information they would reelect the incumbent if and only if the state is sufficiently high. Undesirable policy outcomes may be due to either a bad state or the incumbent's choice of inefficient policies. The incumbent uses inefficient policies in intermediate states, whereby he creates uncertainty about the true state in such a way that voters are better off in expectation reelecting him. Hence the equilibrium exhibits an incumbency advantage that stems from asymmetric information and the use of inefficient policies.
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ItemSign and phase asymmetry: News, economic activity and the stock market(ELSEVIER SCIENCE BV, 2010-12-01)
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ItemHOW DO AGRICULTURAL POLICY RESTRICTIONS ON GLOBAL TRADE AND WELFARE DIFFER ACROSS COMMODITIES?(OXFORD UNIV PRESS INC, 2010-04-01)Abstract For decades the world's agricultural markets have been highly distorted by government policies, but differently for different commodities such that a ranking of weighted average nominal rates of assistance across countries can be misleading as an indicator of the trade or welfare effects of policies affecting global markets. This article develops two theory‐based indicators, drawing on the recent literature on trade restrictiveness indexes. It estimates those indicators for each of 28 key agricultural commodities from 1960 to 2004, based on a sample of 75 countries that together account for more than three‐quarters of the world's production of those agricultural commodities.
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ItemPeacock and Wiseman's displacement hypothesis: some new long-run evidence for the UK(ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD, 2010-01-01)
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ItemRevenue Elasticities in Complex Income Tax Structures: An Application to Spain(WILEY, 2010-12-01)Abstract This paper derives analytical expressions for the revenue elasticity of complex income tax systems, as applied to tax units and in aggregate. Among the complexities considered are the schedular nature of income tax systems and the role of central and regional governments, along with the existence of a range of intricate tax credits and eligible expenditures and deductions. Empirical estimates are obtained for the case of Spain using a cross‐sectional data set, which enables a number of important ancillary elasticities (relating to allowances and tax credits, and different income sources) to be estimated. It is found that there is considerable variation among tax units in the revenue elasticity, with highly positively skewed distributions. The nature of the distributions varies among regions of Spain, and the aggregate elasticities for each region were found to display some variation associated with income distribution differences. The national aggregate is found to be around 1.3.
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ItemALCOHOL CONSUMPTION AND HUMAN CAPITAL: A RETROSPECTIVE STUDY OF THE LITERATURE(WILEY, 2010-04-01)Abstract Grossman proposed an individual's health can be viewed as one aspect of their human capital. Following this line of thought a number of recent papers have reported a positive impact of alcohol consumption on earnings. The rationale for the existence of such a relationship is the positive impact of alcohol on physical and mental health. We conduct a meta‐analysis to determine whether such factors as: the estimation technique, the presence of ex‐drinkers in the sample, possible sample selection bias and publication bias may all contribute to these findings. An additional suggestion for the positive relationship between alcohol and wages is the presence of a common set of personality traits that determines drinking behaviour and also leads to higher earnings. We examine this relationship by reviewing the literature that investigates if the personality influencing aspects of alcohol consumption influences measures of human capital. We also survey the significant body of research that has examined how alcohol consumption has been found to influence educational outcomes and the work force participation of problem drinkers.