Poverty Effects of the Philippines’ Tariff Reduction Program: Insights from a Computable General Equilibrium Analysis*

A computable general equilibrium micro‐simulation model is used to assess the economic and poverty impacts of tariff reduction in the Philippines. Tariff reduction induces consumers to substitute cheaper imported agricultural products for domestic goods, thereby resulting in a contraction in agricultural output. In contrast, tariff reduction reduces the domestic cost of production, benefiting the outward‐oriented and import‐dependent industrial sector. The national poverty headcount decreases marginally as lower consumer prices outweigh the nominal income reduction experienced by the majority of households. However, both the poverty gap and severity of poverty worsens, implying that the poorest of the poor become even poorer.     

Marginal Valuation of Charismatic Species: Implications for Conservation

Most contingent valuation studies focus on total willingness to pay (WTP) as a measure of welfare change. For policy involving species preservation, however, it is important to distinguish between the benefits of preventing a species from going extinct and the benefits of preserving numbers above the minimum viable population (MVP) level. Once MVP is exceeded, marginal WTP becomes relevant. These propositions are illustrated for the case of one charismatic species whose management is much debated, minke whales in the Northeast Atlantic Ocean. It is shown that, for a given estimate of total preservation value, strict conservation and extinction can both be optimal. This finding highlights the importance of collecting marginal values in contingent valuation surveys.     

The Gains from Trade and Policy Reform Revisited

The primary purpose of the paper is to provide characterizations of the conditions for welfare improvements in several situations that have received very little attention in the existing literature. The first aim is to exhibit the gains that can accrue to a country from the elimination of excess supplies as a result of a policy move from autarky to free trade. The second aim is to characterize the conditions under which the introduction of new goods into the economy will generate welfare gains. The third main area discussed is the extension of the authors’ methodology to a large open economy that can influence its terms of trade. The techniques used to illustrate the gains from eliminating excess supplies and from the introduction of new goods have a much wider applicability; they may be used to obtain and synthesize several welfare results from the literature.     

Some evidence on debt-related determinants of investment and consumption in heavily indebted countries

Zusammenfassung Zur Evidenz schuldenabh?ngiger Bestimmungsgründe der Investitionen und des Konsums in stark verschuldeten L?ndern. — In den meisten stark verschuldeten L?ndern war die Investitionst?tigkeit seit 1982 gering. Die weitgehend anerkannte Lehrmeinung vom Schuldenüberhang versteht den Investitionsrückgang als moral-hazard-Problem: eine gro\e Schuldenlast erh?ht den Anreiz, mehr zu konsumieren, weil im alternativen Fall einer verst?rkten Investitionst?tigkeit der Grenznutzen der Investitionen dem Gl?ubiger zukommen würde. Die Verfasser entwikkeln zun?chst einige Hypothesen über die optimalen Reaktionen eines in der Kreditaufnahme beschr?nkten Schuldnerlandes auf eine Erh?hung der Schulden sowie auf Ver?nderungen der Kreditrestriktionen und Zinss?tze. Danach stellen sie diese Hypothesen den Aussagen gegenüber, die sich aus der Lehre vom Schuldenüberhang ableiten lassen. Empirische Spezifizierungen der konventionellen Investitions- und Konsumfunktionen (Hypothese des permanenten Einkommens) führen dazu, die Lehre vom Schuldenüberhang abzulehnen, und zeigen vielmehr, da\ der Wechsel von positiven zu negativen Transferzahlungen des Auslands an die Schuldnerl?nder ein wichtiger Grund für den Investitionsrückgang in den Schuldnerl?ndern ist. Die wesentliche wirtschaftspolitische Schlu\folgerung daraus ist, da\ der 1989 erfolgte Wechsel im internationalen Schulden-management (die Brady-Initiative) — der die Schuldenentlastung st?rker betonte als das Problem, neue Kredite zu bekommen — die Investitionst?tigkeit in den Schuldnerl?ndern nicht anregen wird. Statt dessen bedürfen diese L?nder der Zuführung neuer Finanzmittel, um vorteilhafte Investitionschancen wahrnehmen zu k?nnen.

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Résumé Quelque évidence pour l’influence de la dette sur l’investissement et la consommation aux pays gravement endettés. — L’investissement aux plusieurs pays gravement endettés a été très faible depuis l’année 1982. La proposition de la dette excédante qui est largement acceptée explique la chute de l’investissement comme un problème du ?moral hazard?: la dette pesante incite la consommation parce qu’au cas alternatif d’une augmentation de l’investissement le revenu marginal de l’investissement favorise le créancier. L’étude développe quelques hypothèses sur les réactions optimales d’un pays débiteur qui résultent d’une augmentation de dettes et d’un changement de la restriction de crédit et du taux d’intérêt. Puis les auteurs les met en face avec les prédictions venant de la proposition de la dette excédante. Les spécifications empiriques des fonctions conventionnelles de l’investissement et de la consommation mènent à rejeter la proposition de la dette excédante et montrent que l’altération des transferts étrangers en direction négative est une explication importante de la chute de l’investissement des pays débiteurs. La conclusion importante pour la politique économique est que le changement dans le management international des crédits (l’initiative de Brady) ne poussera pas l’investissement aux pays débiteurs. Ceux pays-ci ont besoin d’une infusion de nouveaux capitaux pour profiter des occasions de l’investissement avantageux.

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Resumen Alguna evidencia de los determinantes de la inversion y del consumo relacionados con la deuda en paises altamente endeudados. — Después de 1982 la inversión ha sido débil en la mayoria de los países altamente endeudados. La muy difundida proposición del exceso de deuda interpreta la baja inversión como un problema de “moral hazard”. En este trabajo primero se desarrollan varias hipótesis sobre las reacciones óptimas de un pais deudor sometido a crédito limitado a un aumento de la deuda, a variaciones del limite de crédito y a cambios en las tasas de interés, para después contrastar estas reacciones con las predicciones derivadas de la proposición del exceso de deuda. Las especificaciones empiricas de las funciones de inversion y consumo convencionales llevan a un rechazo de la proposition del exceso de deuda, pero encuentran que el cambio de transferencias positivas a negativas a los países endeudados es una importante explicación para la baja inversión. La conclusion importante para la politica es que el cambio en el manejo internacional de la deuda ocurrido en 1989 (la iniciativa de Brady) no acelerará la inversión en los paises deudores. Más bien, estos países necesitarían una infusión de nuevos fondos para poder aprovechar las oportunidades beneficiosas de inversión.

     

An antitrust analysis of non-profit hospital mergers

This paper considers such issues involved in non-profit hospital mergers as relevant product and geographic markets and the impacts of mergers on competition. The roles of non-price competition, entry barriers, and merger-generated efficiencies are considered. Close attention is given to the relevance of the Justice Department Merger guideline to the hospital industry. Through detailed examination of four litigated or challenged cases, the geographic market is shown to depend upon particular medical services. Outpatient services are found to comprise a separate market from inpatient hospital services, and non-profit status is determined to warrant the usual antitrust merger treatment.     

Export controls: Providing security in a volatile environment

Major changes in the world economy such as the demise of the Communist bloc, the increased foreign availability of high technology products, and the rapid dissemination of information and innovation, have resulted in a decrease in support for export controls by the policy and business communities. Nevertheless, export controls continue to constitute an important policy arrow in the quiver of national foreign policy instruments. The foundation of a new, multilateral export control regime is discussed, with major emphasis placed on the development of strong national security controls and the structuring of a foreign policy control system that can be brought to bear expeditiously without imposing an undue competitive burden on businesses. © 1995 John Wiley & Sons, Inc.     

Zur problematik der einkommensverteilung

Ohne Zusammenfassung     

Survey measures of first‐ and second‐order competences

Research summary : This study tests and validates survey measures of first‐ and second‐order competences in order to foster cumulative empirical research and theoretical refinement in the area of dynamic capabilities. Data from two informants and two time periods for a sample of publicly traded U.S. manufacturing firms are used to examine the convergent, discriminant, and nomological validity, and the reliability of scales to measure various levels and types of competences. Findings suggest that customer competence, technological competence, marketing competence, and R&D competence are related but distinct dimensions, evidencing strong validity and reliability. Qualifying this empirical support, it was found that items regarding manufacturing operations and facilities seemed to measure aspects unrelated to the focal competences, and that marketing competence had no relation to future market‐resource accumulation. Managerial summary : This study enhances understanding and measurement of dynamic capabilities, in particular, marketing and R&D second‐order competences. Marketing and R&D second‐order competences are a firm's ability to build new competences to serve new markets or use new technologies, respectively. The ability of a firm to add new market‐related resources (such as brands and distribution channels) and technological resources (such as patents and engineering skills) helps it cope with environmental change and grow in new directions. For firms in stable environments, being able to serve new markets and use new technologies provide opportunities for growth. For firms in turbulent environments, these skills are a matter of survival. Using data collected from publicly traded U.S. manufacturing firms, this study tests and validates questions that can be asked in questionnaires presented to management. It finds that even if a firm has strong skills in serving current customers and great technology, it may not be able to go after new markets or technologies. The survey questions tested here could be used not only by other researchers, but also by practitioners. Managers, management consultants, and industry association advisors could use the scales as diagnostic instruments or to perform benchmarking. Copyright © 2015 John Wiley & Sons, Ltd.