Externality‐Correcting Taxes and Regulation*

In much of the literature on externalities, taxes and direct regulation have been considered as alternative policy instruments. Both instruments might be imperfect in practice, reflecting informational deficiencies and other limitations. We analyse the use of taxes and regulation in combination, to control externalities arising from individual consumption behaviour. We consider the cases either where taxes are imperfectly differentiated to reflect individual differences in externalities, or where some consumption escapes taxation. In both cases, we characterize the optimal instrument mix, and we show how changing the level of direct regulation alters the optimal externality tax.     

欧盟海关控制下的加工

欧盟立法机构提供一种用来节约关税税款的程序，称做“海关控制下的加工”（Processing under Customs Control，PCC）。这是一种贸易促进措施，用来鼓励货物在欧盟进行加工。这种措施允许货物从欧盟以外的国家进口到欧盟，用于加工而不必缴纳进口税，或是受其他商业政策措施的管制。     

The Economics of Career Concerns, Part II: Application to Missions and Accountability of Government Agencies

The paper uses a simple multitask career concern model in order to analyse the incentives of government agencies' officials. Incentives are impaired by the agency pursuing multiple missions. A lack of focus is even more problematic in the case of fuzzy missions, that is when outsiders are uncertain about the exact nature of the missions actually pursued by the agency. Consequently agencies pursuing multiple missions receive less autonomy.
The paper further shows that professionalization creates a sense of mission for the agency, and that the specialization of officials raises their incentives. Last, the paper compares its predictions with the stylized facts on Government bureaucracies.     

Living at Work: Management Control and the Dormitory Labour System in China

The paper is based on a review of the literature on the use of dormitory labour, in the past and currently within parts of China, especially the Southern Pearl River Delta. It compares the provision of dormitories by firms with provision of housing under paternalist management practices. It explores the benefits that flow from having labour available on tap, as against the potential disadvantages of having short tenure circulating labour as firms aim to move up the value chain which may require the retention of skilled labour with the firm for longer periods.     

The effects of taxation on married women's labour supply across four countries

The labour force participation rate of married women variesconsiderably between European countries. There may be severalexplanations for this evidence. In this study, the effect ofthe different income tax schemes on female labour force participationis investigated and compared. A common labour supply functionis estimated on cross-section household samples for each ofthe countries Britain, Denmark, Ireland, and East and West Germany.Based on the estimated labour supply functions, we calculatefor each of the countries the hypothetical part time and fulltime participation rates of married women if the householdswere taxed by either separate or split taxation principles,as in Britain and Ireland, respectively. The results suggestthat the design of the tax scheme is highly important for theeconomic incentives that married women face and their resultinglabour supply behaviour.     

The Costs of Restrictive Trade Policies in the Presence of Factor Tax Distortions

This paper uses a numerical general equilibrium model to examine the quantitative importance of pre-existing factor tax distortions for the welfare effects of tariffs and import quotas. The presence of pre-existing taxes can greatly raise the costs of these policies, possibly by over several hundred percent. For a tariff much of this extra cost can be offset if tariff revenues are used to reduce distortionary taxes. Hence there can be a large cost discrepancy between tariffs and quotas. The optimal tariff for a country with market power in trade can be reduced to zero, unless revenues finance cuts in distortionary taxes.     

Auditor quality,corporate risk,and the valuation of new issues

This paper tests two hypotheses derived from the Data et al. (1991) theoretical model of auditor choice by companies newly listing on the stock exchange. The results offer support to their predictions of the demand for auditor quality. In particular, higher-risk companies are associated with the selection of a high-quality auditor, as proxied by a Big Eight firm of accountants. Additionally, companies who employed Big Eight firms had higher market valuations of their stock at the time of listing.     

Impact Fees and the Price of New Housing: An Empirical Study

Development exactions in the form of impact fees are being used increasingly by local governments to fund the cost of providing public services necessitated by growth and development. This paper presents the results of an empirical study designed to ascertain the extent to which impact fees are capitalized into the price of new, single-family dwellings. On June 3, 1974, the city of Dunedin, located in Pinellas County, Florida, began assessing impact fees of $1,150 against all new, single-family construction. Using data on 5,839 new home sales in Dunedin and three other cities in Pinellas County from 1971–1982, it was found that builders were able to pass forward the total cost of impact fees to new home buyers. However, the price differential due to impact fees for new dwellings in Dunedin compared to the price of new dwellings in the other three cities disappeared after approximately six years. This is explained by the nature of the fee structure in Dunedin, adjustments in factor costs, increases in the price of housing in competing cities, and unrealized expectations regarding the benefits to be provided by impact fee collections.     

Health care and philanthropy: where are we headed?

Peering into health-care's future means examining social, economic and political issues. Knowing what's coming will help development professionals deal with this new world.