|
on Regulation |
| By: | Nimisha Srivastava |
| Abstract: | This paper makes a reality check regulation of auto rickshaw regulation in Vadodara.[Working Paper No.0065]. |
| Keywords: | reality check, auto rickshaw, regulation, Vadodara |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2595&r=reg |
| By: | Juan Rosellón; Hannes Weigt |
| Abstract: | We propose a price-cap mechanism for electricity-transmission expansion based on redefining transmission output in terms of financial transmission rights. Our mechanism applies the incentive-regulation logic of rebalancing a two-part tariff. First, we test this mechanism in a three-node network. We show that the mechanism intertemporally promotes an investment pattern that relieves congestion, increases welfare, augments the Transco´s profits, and induces convergence of prices to marginal costs. We then apply the mechanism to a grid of northwestern Europe and show a gradual convergence toward a common-price benchmark, an increase in total capacity, and convergence toward the welfare optimum. |
| Keywords: | Electricity transmission expansion, incentive regulation |
| JEL: | L51 L91 L94 Q40 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1019&r=reg |
| By: | Daniela Marconi (Bank of Italy) |
| Abstract: | The relocation of more polluting industries in poorer countries due to gaps in environmental standards is known as the pollution haven effect, whereby the scale and the composition of output change across countries. Changes in the composition of the output mix might translate into changes of comparative advantages across countries, as revealed by trade flows. This paper focus on this issue and looks at the changes of bilateral revealed comparative advantages (RCAs) in the last decade between China and the major fourteen EU countries (EU14). Using industry level data on bilateral trade, air pollution, water pollution and several measures of environmental stringency, we find that, controlling for other factors that may have affected RCAs, such as labor costs, on average our EU14 countries have kept or improved their advantages with respect to China in both water polluting industries (such as paper and agro-based industries) and air polluting industries (such as basic metals and chemicals), while they have lost competitiveness in the more clean industries (such as machinery and fabricated metals). |
| Keywords: | revealed comparative advantages, environmental regulation, industrial pollution |
| JEL: | F14 F18 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_67_10&r=reg |
| By: | Inoue, Jun |
| Abstract: | This paper examines the regulatory characteristics of the EU, the UK, and Japan concerning the accepting of nurses from overseas, by focusing on the interests of regulatory bodies and policies to promote or mitigate the impact of push-pull factors on the inflow of nurses. These cases show that verifying qualifications, assessing language skills, and admitting work permits are important, instant, and effective measures through which regulatory bodies can promote or mitigate the impact of push-pull factors on the inflow of nurses into their territories. The EU and the UK studies revealed that further research is required concerning the discrimination which is prohibited under EU law. Compared to Europe, Japan's Economic Partnership Agreement (EPA) is a full-course regulatory arrangement that covers issues ranging from quantitative restriction, refusal of mutual recognition, refusal of verification of qualification valid in other countries, and language proficiency to work permit, due to ambivalent interests in a single regulatory framework. |
| Keywords: | migration of nurses, the EU, the UK, Japan's EPA, regulatory bodies |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hituec:a526&r=reg |
| By: | Salvador Calatayud (Departamento de Análisis Económico, Universidad de Valencia) |
| Abstract: | The role of the state in nineteenth-century Spanish economy has been very controversial and has generally received negative judgments. This article tries to evaluate the intervention in the regulation of rice cultivation. Justified against malaria, this regulation encountered great difficulties to be applied until it consolidated the new state apparatus after the liberal revolution, because of local resistance and administrative constraints. In the second half of the nineteenth century, however, the state introduced legislation that would live in time and was widely respected. Thus the state showed a certain autonomy from social interests and set up measures that had an impact on improving population health. |
| Keywords: | Agriculture, Agrarian politics, State building, Paddy fields |
| JEL: | N23 Q10 Q18 H70 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:seh:wpaper:1001&r=reg |
| By: | Dee, Philippa; Diop, Ndiame |
| Abstract: | The purpose of this paper is to benchmark Tunisia against other emerging economies in terms of the regulatory barriers affecting particular services sectors, and to assess the economy-wide effects of further liberalizing these services trade restrictions, compared with reducing the dispersion in barriers to its merchandise trade. On the basis of a rather restricted sample of services sectors, partial regulatory reform would yield gains roughly equivalent to full unilateral reform of manufacturing tariffs, but roughly one-tenth the gains from full bilateral reform of border protection in agriculture with the European Union. The adjustment costs associated with these services trade reforms would be minimal. The paper identifies the reasons why the gains from these services reforms are relatively small, and argues that a wider set of reforms could provide win-win outcomes and even fewer adjustment costs. By contrast, the gains in agriculture and manufacturing tend to come at the expense of domestic output in the reforming sectors -- the gains are greater, but so too are the adjustment costs. |
| Keywords: | Transport Economics Policy&Planning,Banks&Banking Reform,Emerging Markets,Economic Theory&Research,Markets and Market Access |
| Date: | 2010–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5341&r=reg |
| By: | José J. Sempere Monerris (Universitat de València); Rafael Moner Colonques (Universitat de València); Amparo Urbano Salvador (Universitat de València) |
| Abstract: | This paper looks into the desirability of trade liberalization for manufacturers, retailers and consumers. The analysis compares the move from the autarky situation to either one of free trade that entails a change in the distribution system or not. We also examine whether the interests of manufacturers and retailers about the preferred distribution system coincide, provided trade opens. We find that market integration is beneficial to all agents only under certain conditions on the degree of market asymmetry and the degree of product differentiation. Interestingly, if integration entails a change in the distribution system, the conflict between manufacturers and retailers strengthens since only retailers prefer free trade when markets are not too asymmetric and when interbrand competition is sufficiently strong. Furthermore, consumers can be harmed by trade and, in a setting without exclusivities, one country may experience a welfare decrease. Finally, the analysis of the strategic choice concerning exclusivity clauses uncovers that retailers and manufacturers never agree about their preference for endogenous distribution systems. |
| Keywords: | International competition, vertical relationships. |
| JEL: | F12 L19 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:ivi:wpasad:2010-09&r=reg |
| By: | María T. Maza; Wílmer S. Sepúlveda; Carlos E. Campo; Alberto M. Berga |
| Abstract: | El objetivo del presente trabajo es valorar las relaciones entre: i) el grado de cumplimiento de la norma ISO 9001 con el tamaño de la empresa y, ii) los diversos apartados de la misma, en un conjunto de almazaras ubicadas en el sur de España. La información empleada proviene de una muestra conformada por 30 almazaras ubicadas en Andalucía, que eran susceptibles de certificación. Para el análisis de la información se emplearon métodos estadísticos multivariantes. Los resultados sugieren la existencia de una fuerte relación entre el grado de cumplimiento de la norma ISO 9001 con el tamaño de las almazaras, en el sentido que las empresas más grandes eran las más susceptibles de certificación. Asimismo, se encontró una estrecha relación entre el grado de cumplimiento de diversos capítulos de la norma. ABSTRACT: The aim of this study is to assess the relationship between: i) the degree of compliance of ISO 9001 with the company size, and ii) the various sections of the same, a set of mills in southern Spain. The information used came from a sample composed of 30 mills in Andalusia, which were capable of certification. To measure the relationship between the degree of compliance with the rule with the size of the company and its sections, we employed a factor analysis and cluster analysis, respectively. The results suggest the existence of a relationship between the degree of compliance with the size of mills, and a close relationship between chapters and measurement resources, accountability of management and product realization. |
| Date: | 2010–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:col:000385:007147&r=reg |
| By: | Dirk Rübbelke; Stefan Vögele |
| Abstract: | Anthropogenic emissions of greenhouse gases cause climate change and this change in turn induces various direct impacts, e.g., changes in regional weather patterns. The frequency of heat waves and droughts in Europe is likely to rise. Yet, beyond these immediate effects of climate change, there are more indirect effects: Droughts may cause water scarcity and a lack in water supply which in turn would affect further sectors and critical infrastructures. An arising lack in water supply for cooling purposes, for example, will negatively affect the electricity generation in power plants. <br /> In this paper we analyse such interplays between climate-change affected sectors. We investigate whether and to which extent power generation and supply in Europe is threatened by climate change because of the higher risk of water supply shortages due to more frequent drought and heat-wave incidences. Our proposed approach cannot only be applied to analyse the climate change effects on individual power plant sites or the overall economy but also on electricity exchanges between countries.<br /> |
| Keywords: | adaptation, climate change, critical infrastructures, electricity trading, energy security, nuclear power plants, vulnerability |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:bcc:wpaper:2010-08&r=reg |
| By: | Yu-Fu Chen; Michael Funke |
| Abstract: | The possibility of low-probability extreme events has reignited the debate over the optimal intensity and timing of climate policy. In this paper we therefore contribute to the literature by assessing the implications of low-probability extreme events on environmental policy in a continuous-time real options model with “tail risk”. In a nutshell, our results indicate the importance of tail risk and call for foresighted pre-emptive climate policies. |
| Keywords: | Climate Policy, Extreme Events, Real Options, Levy process |
| JEL: | D81 Q54 Q58 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:dun:dpaper:236&r=reg |
| By: | Zuzana Fungacova (BOFIT, Bank of Finland); Laurent Weill (LaRGE Research Center, Université de Strasbourg) |
| Abstract: | There has been a notable debate in the banking literature on the impact of bank competition on financial stability. While the dominant view sees a detrimental impact of competition on the stability of banks, this view has recently been challenged by Boyd and De Nicolo (2005) who see the reverse effect. The aim of this paper is to contribute to this literature by providing the first empirical investigation of the role of bank competition on the occurrence of bank failures. We analyze this issue based on a large sample of Russian banks over the period 2001-2007 and in line with the previous literature we employ the Lerner index as the metric of bank competition. Our findings clearly support the view that tighter bank competition enhances the occurrence of bank failures. The normative implication of our findings is therefore that measures that increase bank competition could undermine financial stability. |
| Keywords: | Bank competition, bank failure, Russia. |
| JEL: | G21 P34 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:lar:wpaper:2010-08&r=reg |
| By: | Dr. Friska Parulian (Associate Researcher, Economic Research Institute for ASEAN and East Asia (ERIA)) |
| Abstract: | The global fi nancial crisis hit the Southeast Asian economies through fi nancial and real sectors by the combination of lower global demand and tighter credit demand effect. The challenge for policymakers in this region is not just to prevent the escalation of the crisis and to mitigate the downturn, but also to ensure a good starting position once the rebound sets in. Policymakers should avoid taking on an excessive level of debt or creating the conditions for an infl ationary bubble by the current reaction to the global slowdown. A prudent counter-cyclical policy is necessary, and we should not ignore the medium and long-term sustainability. |
| Date: | 2009–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:pb-2009-04&r=reg |
| By: | François Lévêque (CERNA - Centre d'économie industrielle - Mines ParisTech); Marcelo Saguan (chercheur indépendant - Casa de Velázquez) |
| Abstract: | Ce papier de travail présente une analyse économique critique de l'étude d'impact qui accompagne le projet de loi sur la Nouvelle Organisation du Marché Electrique (ci-après, NOME). Il a semblé utile de prendre au sérieux cette étude cherchant à évaluer les effets du nouveau cadre de la régulation proposé par le gouvernement. La NOME est en effet un dispositif ambitieux qui devrait se traduire par des transformations profondes et durables du secteur électrique français. Il est donc crucial d'essayer de les anticiper et de les discuter. En outre, l'analyse de l'étude de son impact nous offre l'occasion de poursuivre nos premières réflexions menée avec d'autres économistes dans le cadre d'une analyse critique du rapport de la Commission Champsaur dont la NOME s'inspire largement (Crampes et alii, 2009). |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00494220_v1&r=reg |
| By: | Fatma Sine Tepe; Xiaodong Du (Center for Agricultural and Rural Development (CARD); Food and Agricultural Policy Research Institute (FAPRI)); David A. Hennessy (Center for Agricultural and Rural Development (CARD)) |
| Abstract: | Corn markets are important for many industries, including the seed, fertilizer, meat production/processing and agricultural machinery sectors, all of which are highly concentrated. Oligopoly theory suggests that corn input and field equipment suppliers likely benefit from policies that support corn markets, such as U.S. biofuels policy, while meat companies are likely adversely affected. Employing a linear two-factor (S&P 500 and corn prices) equilibrium asset pricing model, this study investigates the impact of biofuels policy on U.S. agribusiness and food processing firm stock prices. Conditional heteroskedasticity in stock returns is accounted for using a GARCH(1,1) model. Corn price increases are found to have positive effects on excess stock returns for seed, fertilizer and machinery companies, while the impact on meat companies is negative. The results may be interpreted as evidence that crop input suppliers gain from U.S. biofuels policy while meat processors lose. |
| Keywords: | biofuels policy, excess stock returns, GARCH effect, linear factor model. |
| JEL: | D43 L13 Q14 |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:ias:fpaper:09-wp497&r=reg |
| By: | Nicholas Economides (Stern School of Business, NYU) |
| Abstract: | This paper responds to arguments made in filings in the FCC’s broadband openness proceeding (GN Dkt. 09-191) and incorporates data made available since my January 14th filing in that proceeding. Newly available data confirm that there is limited competition in the broadband access marketplace. Contrary to some others’ arguments, wireless broadband access services are unlikely to act as effective economic substitutes for wireline broadband access services (whether offered by telephone companies or cable operators) and instead are likely to act as a complement. Nor will competition in the Internet backbone marketplace constrain broadband providers’ behavior in providing “last mile” broadband access services. The last mile, concentrated market structure, combined with high switching costs, provides last mile broadband network providers with the ability to engage in practices that will reduce social welfare in the absence of open broadband rules. Furthermore, the effect of open broadband rules on broadband provider revenues is likely to be small and can be either positive or negative. Unfortunately, various filings have misstated or mischaracterized the results on the economics of two-sided markets. Contrary to what some have argued, allowing broadband providers to charge third party content providers will not necessarily result in lower prices being charged to residential Internet subscribers. This is true under a robust set of assumptions. Despite some parties’ mischaracterization of the economic literature, price discrimination by broadband providers against third party applications and content providers will reduce societal welfare for numerous reasons. This reduction in societal welfare is especially acute when price discrimination is taken to the extreme of exclusive dealing between broadband providers and content providers. Antitrust and consumer protection laws are insufficient to protect societal welfare in the absence of open broadband rules. |
| Keywords: | Network Neutrality, Internet, Discrimination, Prioritization, Two-Sided Market, Market Power, Termination Fee, Broadband |
| JEL: | L1 D4 L12 L13 C63 D42 D43 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:net:wpaper:1002&r=reg |
| By: | Herzing, Mathias (Dept. of Economics, Stockholm University) |
| Abstract: | This paper focuses on the impact of hidden information on strategic interaction in the context of trade agreements. In the presence of informational asymmetry it is possible that a tradeoff between liberalization and sustainability of cooperation emerges. It is shown that it may be optimal to agree on a degree of liberalization associated with a strictly positive ex ante probability of deviation occurring. In that case, cooperation will break down in …finite time, and the optimal degree of liberalization cannot be applied indefinitely. |
| Keywords: | Trade agreements; repeated games; asymmetric information; trade policy |
| JEL: | C72 C73 D82 F13 |
| Date: | 2010–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:sunrpe:2010_0012&r=reg |
| By: | [no author] |
| Abstract: | Countries are increasingly linked internationally. The three models developed in this thesis shed light on how firms and governments respond to the increasing interconnectedness of the world economy, analyzing profit taxation, trade finance and government intervention in the event of a contagious banking crisis. They can help understand in how far integration is beneficial or harmful and what optimal policies might be. My first paper, which is joint work with Sebastian Krautheim, is based on the finding that larger firms are more likely to use tax haven operations to exploit international tax differences. We study a tax game between a large country and a tax haven modeling heterogeneous monopolistic firms, which can shift profits abroad. We show that a higher degree of firm heterogeneity increases the degree of tax competition, i.e. it decreases the equilibrium tax rate of the large country, leads to higher outflows of its tax base and thus decreases its equilibrium tax revenue. Similar effects hold for a higher substitutability across varieties. My second paper takes a first step towards building a theory of trade finance. Cross border transactions are conducted using different payment contracts, the usage of which varies across countries and over time. I build a model that can explain this observation and study its implications for international trade. In the model exporters switch between payment contracts optimally, trading off differences in enforcement and efficiency between financial markets in different countries. I find that the ability of firms to switch contracts is key to understand how trade flows respond to variations in financial conditions. Numerical experiments with a two-country version of the model suggest that limiting the choice between payment contracts reduces traded quantities by up to 60 percent. The third paper, which is joint work with Friederike Niepmann, analyzes ex-post intervention by governments in response to international banking crises under different cooperation regimes. Financial institutions are increasingly linked internationally and engaged in cross-border operations. As a result, financial crises and potential bail-outs by governments have important international implications. Extending Allen and Gale (2000) we provide a model of international contagion allowing for bank bail-outs financed by distortionary taxes. We single out inefficiencies due to spillovers, free-riding and limited burden-sharing. When countries are of equal size, an increase in cross-border deposit holdings improves, in general, the non-cooperative outcome. For efficient crisis management, ex-ante fiscal burden sharing is essential as ex-post contracts between governments do not achieve the same global welfare. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ner:euiflo:urn:hdl:1814/14188&r=reg |
| By: | Croser, Johanna; Anderson, Kym |
| Abstract: | Trade negotiators and policy advisors are keen to know the relative contribution of different farm policy instruments to international trade and economic welfare. Nominal rates of assistance or producer support estimates are incomplete indicators, especially when (especially in developing countries) some commodities are taxed and others are subsidized, in which case positive contributions can offset negative contributions. This paper develops and estimates a new set of more-satisfactory indicators to examine the relative contribution of different farm policy instruments to reductions in agricultural trade and welfare, drawing on recent literature on trade restrictiveness indexes and a recently compiled database on distortions to agricultural prices for 75 developing and high-income countries over the period 1960 to 2004. Results confirm earlier findings that border taxes are the dominant instrument affecting global trade and welfare, but they also suggest declines in export taxes contributed nearly as much as cuts in import protection to global welfare gains from agricultural policy reforms since the 1980s. |
| Keywords: | Economic Theory&Research,Emerging Markets,Taxation&Subsidies,Trade Policy,Markets and Market Access |
| Date: | 2010–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5345&r=reg |
| By: | M. Alvisi; E. Carbonara |
| Abstract: | An integrated monopoly, where all complements forming a composite good are offered by a single firm, is typically welfare superior to a complementary monopoly. This is the "tragedy of the anticommons". We consider the possibility of competition in the market for each complement. We present a model with two perfect complements and introduce n imperfect substitutes for one and then for both complements. We prove that, if one complementary good is produced by a monopolist, and if competition for the other complement does not vary the average quality in the market, then an integrated monopoly is still superior. In such case, favoring competition in some sectors, leaving monopolies in others would be detrimental for consumers and producers alike. Competition may be preferred if and only if the substitutes of the complementary good differ in their quality, so that as their number increases, average quality and/or quality variance increases. Results change when competition is introduced in each sector. In this case, if goods are close substitutes, we find that competition may be welfare superior for a relatively small number of competing firms in each sector, even with no quality differentiation. |
| JEL: | D43 D62 K11 L13 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:708&r=reg |
| By: | Zuzana Fungacova (BOFIT, Bank of Finland); Laura Solanko (BOFIT, Bank of Finland); Laurent Weill (LaRGE Research Center, Université de Strasbourg) |
| Abstract: | The aim of this paper is to analyze bank competition in Russia by measuring the market power of Russian banks and its determinants over the period 2001-2007 with the Lerner index. Earlier studies on bank competition have focused on developed countries whereas this paper contributes to the analysis of bank competition in emerging markets. We find that bank competition has only slightly improved during the period studied. The mean Lerner index for Russian banks is of the same magnitude as those observed in developed countries, which suggests that the Russian banking industry is not plagued by weak competition. Furthermore, we find no greater market power for state-controlled banks nor less market power for foreign-owned banks. We would consequently qualify the procompetitive role of foreign bank entry and privatization. Finally, our analysis of the determinants of market power enables the identification of several factors that influence competition, including market concentration and risk as well as t the nonlinear influence of size. |
| Keywords: | Market power, bank competition, Russia. |
| JEL: | G21 P34 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:lar:wpaper:2010-09&r=reg |
| By: | Dietrich Earnhart; Lubomir Lizal |
| Abstract: | We empirically assess whether firms face economies and/or diseconomies of scale with respect to air pollution control by evaluating the effects of production on firmlevel air emission levels using a panel of Czech firms during the country’s transitional period of 1993 to 1998. By estimating a separate set of production-related coefficients for each individual sector, the analysis permits economies/diseconomies of scale to differ across sectors. More important, the analysis allows these scale effects to vary over time, which seems critical in the context of a transition economy, as the Czech government was tightening air protection polices by imposing more stringent emission limits and escalating emission charge rates. To assess whether these tighter policies expanded economies of scale, the analysis controls for heterogeneity across individual firms by examining intrafirm variation in emissions and production |
| Keywords: | Czech Republic, environmental protection, pollution, production, economies of scale. |
| JEL: | D21 D62 Q53 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:cer:papers:wp405&r=reg |
| By: | Olivier Bomsel (CERNA - Centre d'économie industrielle - Mines ParisTech) |
| Abstract: | L'adoption du codage binaire comme standard universel d'encryptage ou, si l'on préfère, comme alphabet d'une nouvelle écriture mondialisée, est générateur d'externalités très positives souvent appelées effets de réseau. En gros, plus cette écriture est utilisée et plus elle est utile à chaque scripteur. Mais qu'en est-il du sens ? Que sont les externalités, les effets sociétaux associés à la mise en forme et à la circulation du sens ? Sont-ils, eux aussi, strictement positifs ? Peut-on encore, dans le paradigme numérique, séparer la notion d'expression — couverte par le copyright — du sens que celle-ci produit ? Le sens n'est-il pas aussi dépendant de la notion de marque (brand) ? Et si oui, comment les institutions du copyright et des marques se combinent-elles pour stimuler et prescrire des informations signifiantes ? Pour traiter ces questions, on montrera que les formes signifiantes historiquement protégées par le copyright — expressions, créations — induisent des externalités spécifiques, positives et négatives, donnant lieu à des protocoles d'incitation mais aussi de censure. On montrera ensuite que dans la fonction signifiante, la question du « qui parle », l'identification de l'émetteur joue un rôle essentiel. On montrera enfin, que l'institution du copyright, tout comme celle du droit d'auteur, en permettant l'appropriation d'une forme signifiante, lui assigne aussi une marque, un émetteur identifié. Et que ces deux institutions engendrent des externalités croisées. De là que l'institution du copyright ne saurait être entièrement dissociée de celle du droit des marques. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00494225_v1&r=reg |
| By: | Domeij, David (Dept. of Economics, Stockholm School of Economics); Klein, Paul (Institute for International Economics) |
| Abstract: | In an economy with distortionary taxes on labor, can subsidies on day care, financed by an increase in taxes, raise welfare by encouraging women with small children to work? We show, within a heterogeneous-agent life-cycle framework, that the Ramsey optimal policy consists in equalizing consumption/leisure wedges over the life cycle and across agents. A simple way to implement this is to make day care expenses tax deductible. Calibrating our model to Germany, we find that tax deductibility for day care expenses leads to an approximate doubling of labor supply for both married and single mothers with small children. The overall welfare gain from optimal reform corresponds to a 1.0 percent increase in consumption. |
| Keywords: | Female labor force participation; Germany; day care subsidies |
| JEL: | E13 J13 |
| Date: | 2010–06–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:hastef:0729&r=reg |
| By: | Garima Gupta; Avih Rastogi |
| Abstract: | The twenty-first century will be the century of knowledge, indeed the century of the intellect. A nation’s ability to translate knowledge into wealth and social good through innovations will determine its future. Thus innovations hold the key to the creation as well as processing of knowledge. Consequently issues of generation, evaluation, protection and exploitation of intellectual property would become critically important all over the world. Their analysis of intellectual property rights (IPRs) is presented in two sections: in the first they deal with the concept of intellectual property rights and the rationale behind them. In the second section, focus is on the intellectual property rights in the Indian context.[Working Paper No. 0040] |
| Keywords: | knowledge, wealth, social good, innovations,generation, evaluation, protection, exploitation |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2602&r=reg |