On the North-South trade in the Americas and its ecological asymmetries

There has been a long and intensive debate within the scientific community about the role of international trade in the development of countries. During the last decades, the focus of attention has moved from the pure economic level to the environmental aspects of international trade. Establishing a simplified system of North-South trade for one reference period (2003), this paper attempts to test empirically the extent of potential asymmetries with regard to extracted material flows, and contrasts the results with the economic benefits from trade (in terms of value-added). The South is thereby represented by a selection of Latin American countries (Brazil, Chile, Colombia, Ecuador and Mexico), the North comprises one of their main commercial partners, the United States. At the methodological level, a multi-regional input-output analysis is used as the tool of investigation. Results generally support the hypothesis that the South was feeding the North's societal metabolism. South-North material exports were 1.6 times larger than North-South material exports, resulting in a net deficit for the South of 324 million tons. Moreover, material intensity of exported commodities from the South was twice as high as that from the North. It is worth highlighting, however, that part of the North-South hypothesis fails for the sample of countries since the larger part of the economic surplus has remained in the South, contrarily to what would have been expected.     

Asymmetric Demand Information in Uniform and Discriminatory Call Auctions: An Experimental Analysis Motivated by Electricity Markets

We study experimental multi-unit uniform and discriminatory auctions with demand uncertainty, motivated by the ongoing debate about market design in the electricity industry. We study the effect of asymmetric demand-information in the two auction institutions. In our treatment condition some sellers have less information than in our baseline conditions. In both conditions transaction prices and price volatility are not significantly different under the two auction institutions. However, under asymmetric information discriminatory auctions are significantly less efficient. These results are not in line with typical arguments made in favor of discriminatory pricing in electricity industries; namely, lower prices and less volatility.     

Multiple equilibria in a growth model with monopolistic competition

Summary The standard neoclassical growth model is modified by introducing a market structure characterized by monopolistic competition and variable demand elasticities. In equilibrium, the price elasticity of the demand schedule facing a typical firm is a function of the aggregate savings rate. The latter feature results from an assumed wedge between the elasticity of substitution across goods in productive activities and that in consumption. In contrast with most examples in the literature our model does not require increasing returns (internal or external) in order to generate multiple equilibria.Thanks are due to Jess Benhabib, Duncan Foley, Oded Galor and participants in seminars at the Econometric Society Summer Meetings (Boston, 1993), NBER 1993 Summer Institute, CORE, UAB, and European University Institute for helpful comments.     

Wages and productivity: the role of labour market institutions in OECD countries

In the context of a monetary union, to keep a territorial equilibrium in terms of economic activity and employment, the relationship between real wages and productivity is crucial. In this paper, empirical evidence about the response of wages to productivity is obtained for 20 OECD countries and the role of labour market institutions to explain differences in this response is analysed.     

Cost Uncertainty and Taxpayer Compliance

The existence of a private cost borne by audited taxpayers affects the tax enforcement policy. This is so because tax auditors will face now two sources of uncertainty, namely, the typical one associated with taxpayers’ income and that associated with the taxpayers’ idiosyncratic attitude towards tax compliance. Moreover, the inspection policy can be exposed to some randomness from the taxpayers’ viewpoint due to the uncertainty about the audit cost borne by the tax authority. In this paper we provide an unified framework to analyze the effects of all these sources of uncertainty in a model of tax compliance with strategic interaction between auditors and taxpayers. We show that more variance in the distribution of the taxpayers’ private cost of evading raises both tax compliance and the ex-ante welfare of taxpayers. The effects of the uncertainty about the audit cost faced by the tax authority are generally ambiguous. We also discuss the implications of our model for the regressive (or progressive) bias of the effective tax system.     

Pro‐Poor Tourism as a Strategy to Fight Rural Poverty: A Critique

Pro‐poor tourism (PPT) is a development methodology that aims to use tourism as a tool for poverty reduction. PPT has been adopted by multilateral institutions, official development agencies and non‐governmental organizations (NGOs). PPT assumes an absolute definition of poverty that is based on net income. This definition allows the consideration of a tourism initiative as ‘pro‐poor’ even though the income earned by the poor population may be marginal. This paper analyses whether PPT's concept of poverty adequately addresses the issues in rural poverty. We analyse one case of unequal distribution of income generated from tourism in the 1990s (Amantaní Island, Perú). The paper concludes that PPT's concept of poverty circumvents the fact that an unequal distribution of income could imply a loss in the quality of life for the majority of a rural population: the high‐income social sector tends to increase its economic and political power to the detriment of other social sectors.     

Loss of water availability and stream biodiversity under land abandonment and climate change in a Mediterranean catchment (Olzinelles,NE Spain)

In the north rim of the Mediterranean region, where forest cover is increasing as a result of land abandonment and temperatures are rising as a result of climate change, there is increasing interest for the effects of such changes on the runoff of water courses. This is a paramount issue for the conservation of many freshwater habitats and species. In this work we studied the effects of both an increase in forest cover after depopulation and land abandonment and an increase in temperature on the runoff of a Mediterranean catchment and on the aquatic and semi-aquatic fauna species of the stream (Olzinelles valley, NE Spain). Although in our simulation no decreasing trend in runoff is detected, the monthly runoff-rainfall ratio is now 15% lower than 30 years ago, a fact that may be attributed to a drier period rather than to the small afforestation experienced by the catchment in the last decades. Other factors such as increasing temperatures, changing rainfall patterns and increasing canopy cover are discussed. The observed decrease in the water flow has caused the disappearance of white-clawed crayfish (Austropotamobius pallipes), Mediterranean barbel (Barbus meridionalis), chub (Squalius cephalus), European eel (Anguilla anguilla), and southern water vole (Arvicola sapidus). Our results suggest that in a progressively warmer climate, and especially after land abandonment processes, management of Mediterranean mountain areas should be oriented towards an appropriate distribution of agrarian and forest land-covers in terms of water availability. Down to the stream scale, the pools that keep water throughout the year should be conserved and extended to enhance its potential to maintain aquatic and semi-aquatic species populations.     

Panel‐data Estimates of the Production Function and the Revenue Function: What Difference Does It Make?*

The lack of individual firm information on output prices is a major problem in the econometrics of production. In particular, it may be expected to account for a significant share of the large discrepancies found between the cross‐sectional and time‐series estimates of capital and scale elasticities. However, taking advantage of two panel‐data samples for which we had such information, we find that estimating the revenue function (using a nominal output measure) or the production function proper (using a real output measure) makes very little difference for our results. The biases due to other sources of specification errors are probably more important.