Lessons of the 1999 Abolition of Intra-EU Duty Free Sales for the New EU Member States

The abolition of intra-EU duty free was critically discussedand accompanied by a vigorous and well-financed lobbying campaignby the duty free industry. The opponents of this resolutionargued that such a tax-free sales sector created jobs and hardlyreduced the value added and excise tax revenue of individualcountries. In their opinion, the duty free trade not only contributedto the reduction of the travel fare but also could be characterisedas a supplement to the normal retail trade for some products.The challenges for some specific industries led by the abolitionof duty free shopping appear to be considerable in the short-term.However, theoretical and empirical examinations made in thisstudy suggest: (a) intra-EU duty free shopping disturbs theallocation neutrality guaranteed in the single market, (b) macroeconomicsignificance of duty free shopping is rather negligible, and(c) some background studies made for the lobbyists exaggeratethe negative impacts of eliminating intra-EU duty free shopping.These three important arguments, which can also be applied tothe new EU Member States, justify the abolition of intra-EUduty free shopping. (JEL F10; F15; F18; E62; P20)     

Food aid,domestic policy and food security: Contrasting experiences from South Asia and sub-Saharan Africa

Food aid, both for short-term emergency relief and as program food aid that helps address medium-term food “deficits”, is often a major component of food security strategies in developing countries. This study reviews the experience with food aid of four major recipients of food aid (India, Bangladesh, Ethiopia and Zambia) regarding food production, trade, markets, consumption and safety nets, as well as the policy responses to food emergencies. The widely varying experiences of the study countries suggest that food aid that supports building of production and market enhancing infrastructure, is timed to avoid adverse price effects on producers, and is targeted to food insecure households can play a positive role in enhancing food security. However, food aid is not the only, or in many cases, the most efficient means of addressing food insecurity. In many cases private markets can more effectively address shortfalls in food availability and cash transfers may be a viable alternative to food transfers in-kind.     

Restructuring Public Transit Systems: Evidence on Cost Properties from Medium and Large-Sized Companies

This paper analyses the cost structure of a sample of local public transport companies operating in medium and large urban centres in Italy in order to identify the proper network configuration for the service. Technological characteristics of public transit systems are analysed by estimating both variable and total cost function models. The evidence shows the presence of short-run and long-run economies of scale, as well as of economies of network density. This suggests that a suitable network design should at least include a large urban centre, while a regulatory policy aimed at fragmenting the served area would imply an efficiency loss.      

UK environmental policy and the small firm: broadening the focus

The poor environmental performance of small and medium‐sized enterprises (SMEs) in the UK has been attributed to a wide range of barriers, both internal and external to the firm. However, the debate has seldom considered the interplay of factors beyond ‘the firm’. In order for the debate to progress we emphasize the importance of situating the environmental practices of small firms within a context of national policy arrangements. A lack of institutional enfranchisement for SMEs in the UK is a key factor in understanding why environmental policies have yet to be successful in encouraging more environmentally proactive behaviour within this sector. Copyright © 2003 John Wiley & Sons, Ltd. and ERP Environment.     

A Monte Carlo approach to compute the asymptotic standard errors of dynamic multipliers

A Monte Carlo method to compute asymptotic standard errors of dynamic multipliers is proposed. It is applied to Hein's Model I to find standard error of interim multipliers of taxes on nominal income.     

The true meaning of David Ricardo’s four magic numbers

The four numbers in David Ricardo’s example of comparative advantage have been traditionally interpreted as unit labor coefficients in the production of wine and cloth in UK and Portugal. A recent interpretation suggests that they represent instead the labor needed to produce the amounts of wine and cloth actually traded. Ricardo’s four numbers are shown to yield each country’s gains from trade by simply subtracting two of the numbers from the other two. Since the numbers also indicate each country’s comparative advantage, Ricardo established a close connection between comparative advantage and the gains from trade.     

Solution of a problem concerning a 6-person simple game from “theory of games and economic behavior” by von Neumann and Morgenstern

A particular 6-person simple game is examined; the question concerning the existence of solutions in special form is answered negatively.Versione definitiva pervenuta il 4-2-81