Viewpoint: Canadian competition policy: progress and prospects

Abstract.  This paper discusses the state of competition policy – in particular the economics of competition policy – in Canada today and considers its prospects going forward. It argues that: (i) the importance of competition policy has become accepted widely in Canada and indeed throughout much of the world; (ii) competition policy design and enforcement is in general well done in Canada; (iii) economists, including many Canadians, have played a central role in the development of an efficient and effective competition policy in Canada and elsewhere; and (iv) competition policy in Canada is today facing very serious challenges, and economists should be concerned.     

Remittances and incumbency: Theory and evidence

By raising household income, remittances lower the marginal utility of targeted electoral transfers, thus weakening the efficacy of vote buying. Yet, remittances make individuals wealthier and believe the national economy is performing well, which is positively attributed to the incumbent. Building on these insights, I show that the confluence of these divergent channels generate a surprising result that at increasingly higher levels of dissatisfaction with the incumbent, a remittance recipient is more likely to vote for the incumbent than a non‐remittance recipient. These predictions and their underlying mechanisms are substantiated across 18 Latin American countries.     

Population and development: controversy and reconciliation

This paper evaluates the 2 most important antinatalist arguments the have dominated the population debate over the last 25 years, drawing heavily on 3 1984 studies -- land and resource scarcity and saving and investment. The extent to which these arguments have successfully included the indirect effects of population growth on an economy in order to determine the net impact of population is assessed an emerging revisionist interpretation of the role of population in development is discussed. It is believed that on scientific grounds, and focusing primarily on economic impact, neither the arguments nor the various models used to support the antinatalist position sufficiently support the strength of the general conclusion that population growth exerts a strong adverse impact on the economy. Population growth reveals sooner the symptoms of underlying problems, but many of the solutions are to be found in areas other than altering the rate of population growth. Population growth is viewed less as a cause of development problems and more as an agent that pushes more fundamental problems to the forefront. Empirical evidence concerning nonrenewable resource constraints is not sufficient to make any strong conclusion about the impact of rapid population growth. With regard to food, the problem is more one of unrealized potential for increasing agricultural output and of the distribution of income than of diminishing returns to land. The results of economic research have failed to provide substantial and convincing empirical evidence to support the strong antinatalist concern about the adverse effect rapid population growth has on savings and investment. Authors of recent literature reviews deemphasized this impact. A revisionist interpretation deemphasizes some of the traditional" hypothesized direct influence of population and assigns population the role of an accomplice in contrast to the leading role of villain in the development story. To this list is added the importance of the pace of population growth and the political response to it. 2 problems commonly attributed to population are noted to illustrate some of the relevant considerations: food imbalance and high unemployment rates. For many countries, a main cause of food shortage is government policy that penalizes agriculture through the imposition of taxes and subsidies that twist the terms of trade against farmers, thereby reducing incentives to produce and innovate. 1 impact of rapid population growth is to bring this problem to a head sooner. It also forces a more rapid response. The critical question is whether such "time pressure" is more or less likely to bring about changes that will address the causes of the problem or the manifestations of problems. For high rates of unemployment or underemployed labor in 3rd world cities, the question is whether the pressure of time results in a resolution of the fundamental causes or just a treatment of the symptoms.     

Globalization and taxation: Theory and evidence

We construct a theoretical model to capture the compensation and efficiency effects of globalization in a set up where the redistributive tax rate is chosen by the median voter. The model predicts that the two alternative modes of globalization- trade liberalization and financial openness- could potentially have different effects on taxation. We then provide some empirical evidence on the relationship between taxation and the alternative modes of globalization using a large cross-country panel data set. On average, globalization is associated with lower taxation but there is some evidence that in countries with high capital-labor ratio, globalization is associated with increased taxation. We make a distinction between de jure and de facto measures of globalization and find a strong negative relationship between taxation and de jure measures of globalization. The results for de facto measures of globalization are mixed.     

Finance and inequality: Channels and evidence

We provide a framework to interpret the recent literature on financial development and inequality. In many developing countries, access to funding and financial services by firms and households is still very skewed. Recent evidence suggests that poor access does not only reflect economic constraints but also barriers erected by insiders. Inequality affects the distribution of political influence, so financial regulation often is easily captured by established interests in unequal countries. Captured reforms deepen rather than broaden access, as small elites obtain most of the benefits while risks are socialized. Financial liberalization motivated to increase access may in practice increase fragility and inequality, and lead to political backlash against reforms. Thus financial reforms may succeed only if matched by a buildup in oversight institutions. Journal of Comparative Economics 35 (4) (2007) 748–773.     

Trade and Turnover: Theory and Evidence

Is the pattern of trade correlated with cross‐sector differences in job turnover? Theoretically, external shocks feed through to changes in domestic employment and cross‐sector differences in turnover give rise to compensating wage differentials, which feed through to output prices. Using two different datasets on turnover, we find strong evidence that normalized US net exports by sector are negatively correlated with job destruction and worker separation rates. Weaker evidence suggests a positive correlation between normalized net exports and job acquisition. Using sector‐specific job destruction data for both Canada and the US, we find confirmation of the theoretical prediction that normalized net exports to Canada are negatively related to the ratio of the US job destruction rate to the Canadian job destruction rate.     

效率与公平的辨识、抉择和启示

本文在界定效率与公平的内涵的基础上,通过对经济效率与经济效益、分配公平与公平期望的剖析,将经济效率与分配公平的关系归并为三类,并获得启示:经济效率与分配公平是辨证统一的关系;效益原理或公平理论是正确处理经济效率与分配公平关系的准绳;市场主导经济效率,政府主导分配公平;实践科学发展观必须正确处理好经济效率与分配公平的关系.     

Trust and delegation: Theory and evidence

Social trust is associated with good economic performance, but little is known about the transmission mechanisms connecting trust and performance. We explore the effect of trust on delegation decisions. In a theoretical framework, we note that delegation is a low-cost option when management decisions can be implemented without monitoring. This option is, however, risky and more likely to be profitable in higher-trust environments. In a set of cross-country regressions, we show a strong association between trust and delegation, which is increasing in economic sophistication.     

Population and Development: Controversy and Reconciliation

In the two articles above, Clausen and Kelley discuss the significance of the growing world population. The emphasis differs in each article, and readers must interpret the message by weighing the arguments on their own balance.     

逝者如斯:萨特和存在主义的今昔

罗素说:“三种单纯却又极强的激情支配了我的一生:对爱情的渴望,对知识的追求,对人类苦难感到无法忍受的怜悯之情。”这三种内在的生命激情同样也是萨特的人生动力。一个时代的人格印记规定了思想的品格和高度,令人遗憾的是,这种人格和激情于今已绝无仅有了。