Comparative Advantage in Demand: Experimental Evidence of Preferences for Genetically Modified Food in the United States and European Union

The United States (US) exports more than US$6 billion in agricultural commodities to the European Union(EU) each year, but one issue carries the potential to diminish this trade: use of biotechnology in food production. The EU has adopted more stringent policies towards biotechnology than the US. Understanding differences in European and American policies towards genetically modified (GM) foods requires a greater understanding of consumers’ attitudes and preferences. This paper reports results from the first large‐scale, cross‐Atlantic study to analyse consumer demand for genetically modified food in a non‐hypothetical market environment. We strongly reject the frequent if convenient assumption in trade theory that consumer preferences are identical across countries: the median level of compensation demanded by English and French consumers to consume a GM food is found to be more than twice that in any of the US locations. Results have important implications for trade theory, which typically focuses on differences in specialization, comparative advantage and factor endowments across countries, and for on‐going trade disputes at the World Trade Organization.     

Income distribution, borrowing constraints and redistributive policies

This paper sheds light on the relationship between income inequality and redistributive policies and provides possible guidance in the specification of empirical tests of such a relationship. We model a two-period economy where capital markets are imperfect and agents vote over the level of taxation to finance redistributive policies that enhance future productivity. In this context, we show that the pivotal voter is not necessarily the agent (class) with median income. In particular, the poor, who are more likely to be liquidity constrained, may form a coalition with the rich and vote for low redistribution. The effects of an increase in income inequality on the level of redistribution turn out to depend on whether the increase in inequality is concentrated among the poor or the middle class. Empirical results from a panel of 22 OECD countries provide preliminary evidence consistent with our main theoretical implications.     

Financial Liberalization, Property Rights, and Growth in an Overlapping-Generations Model

Using an endogenous growth model in which countries differ with respect to property rights protection, the paper analyzes the growth and welfare effects of removing capital controls, and studies the political support for a reform which improves the quality of property rights. When these are poorly protected, liberalization of capital movements may foster growth in the short run but eliminates it in the long run. The removal of capital controls may benefit agents at the time of liberalization, hurting future generations. Ceteris paribus , political support for a reform of property rights is stronger in the closed than in the open economy.     

The long breadth of cities: revisiting worldwide urbanization patterns, 1950–2030

ABSTRACT

A comparative analysis of population dynamics worldwide contributes to profile distinctive demographic and economic trajectories of urban growth, discriminating processes of settlement concentration or dispersion under sequential cycles of urbanization. However, a wide-ranging characterization of urban cycles based on demographic dynamics worldwide is still missing. The present work is aimed at filling such a gap analysing long-term changes (1950–2030) in annual population growth rate of 1691 urban agglomerations with more than 300,000 inhabitants in 74 world countries. Results of this study indicate that metropolitan growth worldwide was associated with largely variable rates of population growth, highly positive before 2000 and progressively reducing over recent decades. Despite important differences at continental (and country) scale, demographic expansion of urban agglomerations showed two contrasting phases with a break point in the 1980s denoting a progressive reduction in spatial heterogeneity of population growth rates and a moderate slowdown in demographic dynamics. Intensity of urban expansion and spatial heterogeneity in population growth rates across metropolitan agglomerations evidences a trade-off between fast and slow demographic dynamics. These findings can be better understood to support theories of sequential city growth, making a suitable contribution to policy making, especially in countries where urban population is expanding more rapidly.     

Immigration Policy,Self‐selection,and the Quality of Immigrants*

This paper investigates the effects of immigration quotas on the average quality of immigrants by developing a human capital migration model where efficiency in migration depends on skills and emigration rates are higher among skilled workers. Studying the joint determination of the domestic level of wages and immigrants' self‐selection, we find a negative relationship between the wage level and the percentage of educated workers among immigrants, which results in a nonstandard downward‐sloping labor supply. In our framework, a higher quota increases the skill mix of immigrants through its negative effect on wages and raises aggregate national income.     

Perceptions of the risks and benefits of genetically-modified foods and their influence on willingness to consume

There has been debate in the literature as to whether: (1) the risks and benefits of genetically-modified (GM) food and agriculture are considered and determined by individuals separately or whether they are jointly determined by attitudes; (2) consumer acceptance is determined by individuals weighing up their risk and benefit perceptions in a rational, even-handed manner, or if benefit perceptions are more important than risk perceptions, and (3) certain types of risk and benefit are more important than others. Against this background, this paper assesses the categories of risks and benefits and their relative importance in determining willingness to consume. A survey was carried out to collect data on the categories of risks and benefits in the US, UK and France, and the relative importance of selected perceived risk and benefit dimensions was estimated. The findings show: risk and benefit perceptions are negatively correlated, but not perfectly and, given that regressions we performed support the proposition that benefits are more important than risks in determining willingness to consume, a strong case can be made for measuring risks and benefits separately. Almost 2/3 of consumers perceive medium to high potential benefits from GM, though the proportion is slightly lower in the UK and down to 40% in France. Nevertheless, this suggests a much higher level of support for the technology than is normally assumed. From the study, benefits are more important for consumers' willingness to consume than perceived risks, and slightly more interviewees scored above than below the mean on willingness to consume GM food.     

Is Social Security Really Bad for Growth?

This paper develops a model of endogenous growth with overlapping generations to investigate the joint determination of social security, public investment, and growth in a small open economy. We show that a pure pay-as-you-go system with benefits indexed to wages provides taxpayers with incentives to support growth-oriented policies, which increase the future productivity of labor. We find that outcomes characterized by positive levels of intergenerational redistribution, public investment, and long-run growth can be sustained as subgame-perfect Nash equilibria of an infinitely repeated intergenerational game, if and only if the marginal productivity of public capital is large enough. Furthermore, we show that transfers comove with public investment and growth. Journal of Economic Literature Classification Numbers: E62, H55.     

The toll of traffic-related fatalities in a metropolitan Italian area through the experience of the Department of Legal Medicine

Despite the introduction of new traffic laws in Italy, traffic-related deaths are still a huge burden. The study presents data and medico-legal issues behind traffic deaths in Milan between 2001 and 2012 (1506 traffic-related deaths). Data were collected from the database of the Department of Legal Medicine: 79.4% males and 20.6% females (mean age 44.14). The target group concerned traumatic deaths as a consequence of the accident as well as deaths not directly related to an accident. Although 6.1% were non-traumatic deaths (cause of death unconnected to the accident, i.e. because of a heart attack, or when death occurred after survival and cause of death was not related certainly to the accident), multiple skeletal/visceral injuries were the main cause of death (57.9%), occurring in motorcyclists the most (63.7%). Injuries to the skull and brain were the second cause of death (25.9%). Victims were mostly males (79.4%) and drivers (77.6%). Fifty-five per cent were deaths on-scene, while 45% survived. Other variables were also considered: medications, medical history, and drugs/alcohol/smoke. A downward trend in traffic-related fatalities was evident, but the toll is still high. This study should be a glimpse at the actual situation, since it is indicative of a metropolitan area where autopsies are systematically performed.