Joseph E. Stiglitz, José Antonio Ocampo, Shari Spiegel, Ricardo Ffrench-Davis, and Deepak Nayyar
- Published in print:
- 2006
- Published Online:
- September 2006
- ISBN:
- 9780199288144
- eISBN:
- 9780191603884
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199288143.003.0006
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter extends the analysis of the previous chapter to an open economy by introducing exchange rate policy; analyzing the complex relationships between exchange rate, fiscal, and monetary ...
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This chapter extends the analysis of the previous chapter to an open economy by introducing exchange rate policy; analyzing the complex relationships between exchange rate, fiscal, and monetary policies; and examining the ways in which capital flows complicate traditional analyses. Despite the greater complexities associated with open economy macroeconomics, the policy conclusions for a closed economy remain remarkably unaffected. While Keynesians and heterodox economists believe that government should actively intervene, conservatives remain skeptical about the desirability of such interventions. The objective of this chapter is to shed some light on how economists can come to such diverse views on economic policy. The first section examines the macroeconomic effects of exchange rates on employment, trade, inflation, aggregate demand, growth, and balance sheets. The second section examines the complex interactions between fiscal, monetary, and exchange rate policies in open economies with either fixed or flexible exchange rate regimes. This section also examines the effects of interest rates and exchange rates on capital flows in both crisis and non-crisis situations.Less
This chapter extends the analysis of the previous chapter to an open economy by introducing exchange rate policy; analyzing the complex relationships between exchange rate, fiscal, and monetary policies; and examining the ways in which capital flows complicate traditional analyses. Despite the greater complexities associated with open economy macroeconomics, the policy conclusions for a closed economy remain remarkably unaffected. While Keynesians and heterodox economists believe that government should actively intervene, conservatives remain skeptical about the desirability of such interventions. The objective of this chapter is to shed some light on how economists can come to such diverse views on economic policy. The first section examines the macroeconomic effects of exchange rates on employment, trade, inflation, aggregate demand, growth, and balance sheets. The second section examines the complex interactions between fiscal, monetary, and exchange rate policies in open economies with either fixed or flexible exchange rate regimes. This section also examines the effects of interest rates and exchange rates on capital flows in both crisis and non-crisis situations.
Raymond G. Batina and Toshihiro Ihori
- Published in print:
- 2000
- Published Online:
- October 2011
- ISBN:
- 9780198297901
- eISBN:
- 9780191685361
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198297901.001.0001
- Subject:
- Economics and Finance, Financial Economics
The purpose of this book is to introduce the substantial literature on consumption tax policy and the taxation of capital income, the early literature on optimal tax theory in dynamic overlapping ...
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The purpose of this book is to introduce the substantial literature on consumption tax policy and the taxation of capital income, the early literature on optimal tax theory in dynamic overlapping generations' models, the more recent literature on optimal taxation in the Ramsey growth model and models of endogenous growth, and the literature on taxation in open economies. The book summarises the main arguments for and against consumption taxation, presents the main theoretical and empirical results of the technical literature, and, finally, extends the literature in a number of useful ways by complicating the models used to study tax issues. These extensions include bequeathing behaviour, the time consistency problem, the capital levy, charity and privately produced public goods, environmental externalities and renewable resources, durable goods and land, and money used in exchange and as an asset. Chapters are self-contained as far as possible, and each uses a variety of models rather than just one to study the issue at hand. Models and notation are explained each time they are used.Less
The purpose of this book is to introduce the substantial literature on consumption tax policy and the taxation of capital income, the early literature on optimal tax theory in dynamic overlapping generations' models, the more recent literature on optimal taxation in the Ramsey growth model and models of endogenous growth, and the literature on taxation in open economies. The book summarises the main arguments for and against consumption taxation, presents the main theoretical and empirical results of the technical literature, and, finally, extends the literature in a number of useful ways by complicating the models used to study tax issues. These extensions include bequeathing behaviour, the time consistency problem, the capital levy, charity and privately produced public goods, environmental externalities and renewable resources, durable goods and land, and money used in exchange and as an asset. Chapters are self-contained as far as possible, and each uses a variety of models rather than just one to study the issue at hand. Models and notation are explained each time they are used.
Sevket Pamuk
- Published in print:
- 2018
- Published Online:
- May 2019
- ISBN:
- 9780691166377
- eISBN:
- 9780691184982
- Item type:
- book
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691166377.001.0001
- Subject:
- Economics and Finance, Economic History
The population and economy of the area within the present-day borders of Turkey has consistently been among the largest in the developing world, yet there has been no authoritative economic history ...
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The population and economy of the area within the present-day borders of Turkey has consistently been among the largest in the developing world, yet there has been no authoritative economic history of Turkey until now. This book examines the economic growth and human development of Turkey over the past two hundred years. Taking a comparative global perspective, the book investigates Turkey's economic history through four periods: the open economy during the nineteenth-century Ottoman era, the transition from empire to nation-state that spanned the two world wars and the Great Depression, the continued protectionism and import-substituting industrialization after World War II, and the neoliberal policies and the opening of the economy after 1980. Making use of indices of GDP per capita, trade, wages, health, and education, the book argues that Turkey's long-term economic trends cannot be explained only by immediate causes such as economic policies, rates of investment, productivity growth, and structural change. The book offers a deeper analysis of the essential forces underlying Turkey's development—its institutions and their evolution—to make better sense of the country's unique history and to provide important insights into the patterns of growth in developing countries during the past two centuries.Less
The population and economy of the area within the present-day borders of Turkey has consistently been among the largest in the developing world, yet there has been no authoritative economic history of Turkey until now. This book examines the economic growth and human development of Turkey over the past two hundred years. Taking a comparative global perspective, the book investigates Turkey's economic history through four periods: the open economy during the nineteenth-century Ottoman era, the transition from empire to nation-state that spanned the two world wars and the Great Depression, the continued protectionism and import-substituting industrialization after World War II, and the neoliberal policies and the opening of the economy after 1980. Making use of indices of GDP per capita, trade, wages, health, and education, the book argues that Turkey's long-term economic trends cannot be explained only by immediate causes such as economic policies, rates of investment, productivity growth, and structural change. The book offers a deeper analysis of the essential forces underlying Turkey's development—its institutions and their evolution—to make better sense of the country's unique history and to provide important insights into the patterns of growth in developing countries during the past two centuries.
Charles‐Albert Michalet
- Published in print:
- 1999
- Published Online:
- November 2003
- ISBN:
- 9780198296058
- eISBN:
- 9780191596209
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198296053.003.0011
- Subject:
- Economics and Finance, International
This case study on the impact of globalization on France starts by tracing the nationalistic and mercantilistic philosophy of France back to the time of Colbert [1619–1683]. It argues that although ...
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This case study on the impact of globalization on France starts by tracing the nationalistic and mercantilistic philosophy of France back to the time of Colbert [1619–1683]. It argues that although the policies of French administrations of the 1980s towards inward and outward investment underwent a complete volte‐face, these were only embraced reluctantly in the light of the imperatives of globalization and regional integration. It then comes as no surprise that some of the most vociferous critics of globalization are French politicians or bureaucrats – as documented by Michalet in the conclusion to the chapter. The chapter has two main sections, the first discussing the national aspiration with reference to the French ‘hierarchical‐capitalism’ model from the mid‐1960s to mid‐1980s. The second looks at the change from a partially opened economy to a fully open economy, which was marked by the beginning of the abandonment of the French model in favour of neoliberal economic orthodoxy from mid‐1982, and the later trend towards global integration from the mid‐1980s, which was marked by an upsurge of French business investment abroad, and the strengthened presence of foreign enterprises in France.Less
This case study on the impact of globalization on France starts by tracing the nationalistic and mercantilistic philosophy of France back to the time of Colbert [1619–1683]. It argues that although the policies of French administrations of the 1980s towards inward and outward investment underwent a complete volte‐face, these were only embraced reluctantly in the light of the imperatives of globalization and regional integration. It then comes as no surprise that some of the most vociferous critics of globalization are French politicians or bureaucrats – as documented by Michalet in the conclusion to the chapter. The chapter has two main sections, the first discussing the national aspiration with reference to the French ‘hierarchical‐capitalism’ model from the mid‐1960s to mid‐1980s. The second looks at the change from a partially opened economy to a fully open economy, which was marked by the beginning of the abandonment of the French model in favour of neoliberal economic orthodoxy from mid‐1982, and the later trend towards global integration from the mid‐1980s, which was marked by an upsurge of French business investment abroad, and the strengthened presence of foreign enterprises in France.
Claudio R. Frischtak
- Published in print:
- 1999
- Published Online:
- November 2003
- ISBN:
- 9780198296058
- eISBN:
- 9780191596209
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198296053.003.0016
- Subject:
- Economics and Finance, International
The object of this case study is to discuss the response of Latin American governments to the forces of globalization and increasing competition. The first main section, Sect. 2, discusses the role ...
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The object of this case study is to discuss the response of Latin American governments to the forces of globalization and increasing competition. The first main section, Sect. 2, discusses the role of governments in industrializing and developing country contexts, and the next and largest, namely, Sect.3 attempts to assess the recent Latin American experience, arguing that the road to reform—in the sense of changes in the regulatory environment, trade regimes, and asset‐ownership structures—has advanced to the point of irreversibility. Latin economies have become relatively open and increasingly competitive, and to a large extent, the wedge of reform has been driven by the globalization process; there is now a much more hospitable environment to international business in most Latin American countries, particularly to MNEs (multinational enterprises) able to link countries effectively to trade, technology, and investment networks. However, the road to macroeconomic stability has been far more difficult, and there remain persistent problems of fiscal largesse, accommodating monetary policy, low savings (public and private) and excessive domestic absorption; combined, these have led to renewed balance‐of‐payment crises in several Latin American countries since short‐term capital, which would be helpful to make the transition to macro‐stability less painful, and which has been made abundant with globalization, has proved to be a poor basis to offset persistent current‐account deficits. Financial systems have also become fragile in some countries because of excessive and non‐sustainable public‐sector borrowing and a lack of confidence of private agents.Less
The object of this case study is to discuss the response of Latin American governments to the forces of globalization and increasing competition. The first main section, Sect. 2, discusses the role of governments in industrializing and developing country contexts, and the next and largest, namely, Sect.3 attempts to assess the recent Latin American experience, arguing that the road to reform—in the sense of changes in the regulatory environment, trade regimes, and asset‐ownership structures—has advanced to the point of irreversibility. Latin economies have become relatively open and increasingly competitive, and to a large extent, the wedge of reform has been driven by the globalization process; there is now a much more hospitable environment to international business in most Latin American countries, particularly to MNEs (multinational enterprises) able to link countries effectively to trade, technology, and investment networks. However, the road to macroeconomic stability has been far more difficult, and there remain persistent problems of fiscal largesse, accommodating monetary policy, low savings (public and private) and excessive domestic absorption; combined, these have led to renewed balance‐of‐payment crises in several Latin American countries since short‐term capital, which would be helpful to make the transition to macro‐stability less painful, and which has been made abundant with globalization, has proved to be a poor basis to offset persistent current‐account deficits. Financial systems have also become fragile in some countries because of excessive and non‐sustainable public‐sector borrowing and a lack of confidence of private agents.
John Douglas Wilson
- Published in print:
- 2009
- Published Online:
- October 2011
- ISBN:
- 9780195382433
- eISBN:
- 9780199852352
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195382433.003.0010
- Subject:
- Economics and Finance, Public and Welfare
The analytical issues raised by public-finance theorists who have looked at the issue of optimal income taxation when people can move out of a tax jurisdiction have addressed a great number of ...
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The analytical issues raised by public-finance theorists who have looked at the issue of optimal income taxation when people can move out of a tax jurisdiction have addressed a great number of analytically interesting questions of tax design. This chapter provides an overview of the latest thinking among public-finance theorists. Skilled migration has the potential to drastically reduce and even reverse the use of income taxation to achieve an equitable distribution of income. To the extent that emigration does provide benefits for source countries, policies should be pursued that more fully realize their value. But a country's inability to tax emigrants can itself inhibit the use of such policies. While this chapter emphasizes the desirability of taxing foreign-source income, successfully collecting such taxes requires the aid of host countries, including the sharing of tax information.Less
The analytical issues raised by public-finance theorists who have looked at the issue of optimal income taxation when people can move out of a tax jurisdiction have addressed a great number of analytically interesting questions of tax design. This chapter provides an overview of the latest thinking among public-finance theorists. Skilled migration has the potential to drastically reduce and even reverse the use of income taxation to achieve an equitable distribution of income. To the extent that emigration does provide benefits for source countries, policies should be pursued that more fully realize their value. But a country's inability to tax emigrants can itself inhibit the use of such policies. While this chapter emphasizes the desirability of taxing foreign-source income, successfully collecting such taxes requires the aid of host countries, including the sharing of tax information.
Raaj K. Sah and Joseph E. Stiglitz
- Published in print:
- 2002
- Published Online:
- January 2005
- ISBN:
- 9780199253579
- eISBN:
- 9780191601682
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199253579.003.0004
- Subject:
- Economics and Finance, Development, Growth, and Environmental
An analysis is begun of the basic question of how the burden of financing economic development in less developed countries (LDCs) should be shared between those in the urban and rural sectors. An ...
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An analysis is begun of the basic question of how the burden of financing economic development in less developed countries (LDCs) should be shared between those in the urban and rural sectors. An economy is considered that can trade at fixed international prices with the rest of the world, and in which there is a tax border between the urban and rural sectors. The latter assumption indicates that the government can impose different sets of taxes in the two sectors and, as a result, market prices in the two sectors can differ. In such an economy, the question posed above turns out to be equivalent to asking what the relationship should be among prices received by farmers, prices paid by city-dwellers, and international prices. The analysis presented is based on the simplest model that can highlight the central trade-offs involved in taxing or subsidizing the rural and urban sectors, and abstracts from intra-sectoral heterogeneity of individuals and goods, from inter-sectoral flows of factors such as labour and capital, and from the effects of prices and wages on productivity; the basic model has rural peasants selling their agricultural surplus in order to buy industrial goods.Less
An analysis is begun of the basic question of how the burden of financing economic development in less developed countries (LDCs) should be shared between those in the urban and rural sectors. An economy is considered that can trade at fixed international prices with the rest of the world, and in which there is a tax border between the urban and rural sectors. The latter assumption indicates that the government can impose different sets of taxes in the two sectors and, as a result, market prices in the two sectors can differ. In such an economy, the question posed above turns out to be equivalent to asking what the relationship should be among prices received by farmers, prices paid by city-dwellers, and international prices. The analysis presented is based on the simplest model that can highlight the central trade-offs involved in taxing or subsidizing the rural and urban sectors, and abstracts from intra-sectoral heterogeneity of individuals and goods, from inter-sectoral flows of factors such as labour and capital, and from the effects of prices and wages on productivity; the basic model has rural peasants selling their agricultural surplus in order to buy industrial goods.
Raaj K. Sah and Joseph E. Stiglitz
- Published in print:
- 2002
- Published Online:
- January 2005
- ISBN:
- 9780199253579
- eISBN:
- 9780191601682
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199253579.003.0005
- Subject:
- Economics and Finance, Development, Growth, and Environmental
The analysis of the preceding chapter assumed that the government in less developed countries (LDCs) has the ability to maintain separate sets of prices in the urban and rural sectors, but if ...
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The analysis of the preceding chapter assumed that the government in less developed countries (LDCs) has the ability to maintain separate sets of prices in the urban and rural sectors, but if transportation costs between the sectors are low, then the presence of large price differences between the two sectors would provide strong incentives for tax arbitrage and tax evasion. Rationing of food in the urban sector (if the price of food in that sector is lower than in the rural sector) may serve to alleviate this problem, but not without incurring significant administrative costs, and some tax evasion is inevitable. If it is very extensive, government revenues will be significantly less than what was intended, and the legitimacy of the government (or at least of its tax-pricing policies) may be called into question. In any event, it is clear that the problems associated with maintaining different sets of prices in rural and urban sectors imply that some LDC governments may be constrained to having the same set of prices in both sectors. In this chapter, the consequences of changes in the price scissors (the price of industrial goods relative to that of agricultural goods) are analysed by a simple modification to the open-economy model described in the previous chapter, and a simple formula is derived for characterizing the optimal price scissors.Less
The analysis of the preceding chapter assumed that the government in less developed countries (LDCs) has the ability to maintain separate sets of prices in the urban and rural sectors, but if transportation costs between the sectors are low, then the presence of large price differences between the two sectors would provide strong incentives for tax arbitrage and tax evasion. Rationing of food in the urban sector (if the price of food in that sector is lower than in the rural sector) may serve to alleviate this problem, but not without incurring significant administrative costs, and some tax evasion is inevitable. If it is very extensive, government revenues will be significantly less than what was intended, and the legitimacy of the government (or at least of its tax-pricing policies) may be called into question. In any event, it is clear that the problems associated with maintaining different sets of prices in rural and urban sectors imply that some LDC governments may be constrained to having the same set of prices in both sectors. In this chapter, the consequences of changes in the price scissors (the price of industrial goods relative to that of agricultural goods) are analysed by a simple modification to the open-economy model described in the previous chapter, and a simple formula is derived for characterizing the optimal price scissors.
Christopher Erceg, Christopher Gust, and David López-Salido (eds)
- Published in print:
- 2010
- Published Online:
- February 2013
- ISBN:
- 9780226278865
- eISBN:
- 9780226278872
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226278872.003.0003
- Subject:
- Economics and Finance, Macro- and Monetary Economics
This chapter analyzes the extent to which openness to trade may influence the economy's response to domestic shocks. The analysis is conducted in terms of two models, that is, a medium-scale ...
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This chapter analyzes the extent to which openness to trade may influence the economy's response to domestic shocks. The analysis is conducted in terms of two models, that is, a medium-scale two-country model used at the Federal Reserve Board for policy simulations (known as SIGMA), and a two-country version of the Erceg-Henderson-Levin model. The effects of three domestic shocks in each of the models, that is, a permanent decline in the inflation target, a persistent increase in government spending, and a persistent technology shock are examined. The findings are summarized as any substantial differences observed in the volatility and persistence of output and domestic inflation between highly open and relatively closed (but otherwise similar) economies will hardly be attributable to differences in the propagation mechanisms of domestic shocks, but rather must be the consequence of their differential response to shocks in the rest of the world.Less
This chapter analyzes the extent to which openness to trade may influence the economy's response to domestic shocks. The analysis is conducted in terms of two models, that is, a medium-scale two-country model used at the Federal Reserve Board for policy simulations (known as SIGMA), and a two-country version of the Erceg-Henderson-Levin model. The effects of three domestic shocks in each of the models, that is, a permanent decline in the inflation target, a persistent increase in government spending, and a persistent technology shock are examined. The findings are summarized as any substantial differences observed in the volatility and persistence of output and domestic inflation between highly open and relatively closed (but otherwise similar) economies will hardly be attributable to differences in the propagation mechanisms of domestic shocks, but rather must be the consequence of their differential response to shocks in the rest of the world.
Mausumi Das and Subrata Guha
- Published in print:
- 2011
- Published Online:
- September 2012
- ISBN:
- 9780198073970
- eISBN:
- 9780199081615
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198073970.003.0008
- Subject:
- Economics and Finance, Microeconomics
This chapter assesses the impact of the quality of teachers on the growth process in a small open economy with a universal public education system. The teachers' salaries are shouldered by the ...
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This chapter assesses the impact of the quality of teachers on the growth process in a small open economy with a universal public education system. The teachers' salaries are shouldered by the government and financed by taxation, while education is provided free to all. Specifically, a tax is imposed on the labour income of current adults and on income from capital generated within the economy. The quality of workers including those joining the teaching profession is endogenously determined by their level of human capital. In this setup, the chapter demonstrates that the rate of economic growth is a function of the quality of teachers relative to the quality of all workers in the economy. The latter, in turn, is correlated with the taxation policy of the government. The chapter also shows that there is an optimal tax policy and an optimal value for the relative quality of teachers.Less
This chapter assesses the impact of the quality of teachers on the growth process in a small open economy with a universal public education system. The teachers' salaries are shouldered by the government and financed by taxation, while education is provided free to all. Specifically, a tax is imposed on the labour income of current adults and on income from capital generated within the economy. The quality of workers including those joining the teaching profession is endogenously determined by their level of human capital. In this setup, the chapter demonstrates that the rate of economic growth is a function of the quality of teachers relative to the quality of all workers in the economy. The latter, in turn, is correlated with the taxation policy of the government. The chapter also shows that there is an optimal tax policy and an optimal value for the relative quality of teachers.
Stephen Zamora, José RamlÓN CossÍO, Lenone Pereznieto, José Roldá n-Xopa, and David Lopez
- Published in print:
- 2005
- Published Online:
- March 2012
- ISBN:
- 9780199288489
- eISBN:
- 9780191700514
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199288489.003.0012
- Subject:
- Law, Constitutional and Administrative Law
This chapter discusses economic and environmental regulation in Mexico. First, it discusses the establishment of a new legal framework for a free market economy. Congress adopted a series of laws to ...
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This chapter discusses economic and environmental regulation in Mexico. First, it discusses the establishment of a new legal framework for a free market economy. Congress adopted a series of laws to regulate business activity in the new, open economy in which private investment was to play a much larger role. It then discusses environmental regulation, focusing on the adoption of the General Law of Ecological Equilibrium and Environmental Protection (Ley General del Equilibrio Ecológico y la Protección al Ambiente, or LGEEPA), which makes up the general regulatory framework pertaining to ecology and the environment.Less
This chapter discusses economic and environmental regulation in Mexico. First, it discusses the establishment of a new legal framework for a free market economy. Congress adopted a series of laws to regulate business activity in the new, open economy in which private investment was to play a much larger role. It then discusses environmental regulation, focusing on the adoption of the General Law of Ecological Equilibrium and Environmental Protection (Ley General del Equilibrio Ecológico y la Protección al Ambiente, or LGEEPA), which makes up the general regulatory framework pertaining to ecology and the environment.
Arnold C. Harberger
- Published in print:
- 2008
- Published Online:
- August 2013
- ISBN:
- 9780262042475
- eISBN:
- 9780262271707
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262042475.003.0017
- Subject:
- Economics and Finance, Econometrics
This chapter examines the incidence of changes in the corporate income tax in a global economy in the context of a four-sector (tradable and non-tradable goods produced by both the corporate and the ...
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This chapter examines the incidence of changes in the corporate income tax in a global economy in the context of a four-sector (tradable and non-tradable goods produced by both the corporate and the non-corporate sectors) general equilibrium model. It concludes that domestic labor often bears the full burden—or more than the full burden (overshifting)—of the corporate income tax and that a larger burden on capital understates the degree of international capital mobility as well as the degree of substitutability between domestic goods and competing imports. The chapter first considers the open economy vs. closed economy scenario for corporate income tax incidence before turning to the treatment of the corporate income tax as a “partial factor tax”.Less
This chapter examines the incidence of changes in the corporate income tax in a global economy in the context of a four-sector (tradable and non-tradable goods produced by both the corporate and the non-corporate sectors) general equilibrium model. It concludes that domestic labor often bears the full burden—or more than the full burden (overshifting)—of the corporate income tax and that a larger burden on capital understates the degree of international capital mobility as well as the degree of substitutability between domestic goods and competing imports. The chapter first considers the open economy vs. closed economy scenario for corporate income tax incidence before turning to the treatment of the corporate income tax as a “partial factor tax”.
Hian Teck Hoon
- Published in print:
- 2011
- Published Online:
- August 2013
- ISBN:
- 9780262015318
- eISBN:
- 9780262295413
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262015318.003.0014
- Subject:
- Economics and Finance, Econometrics
This chapter proves the theory that a permanent increase in payroll taxes used to finance government purchases in a small open economy that takes the external rate of interest as given is neutral for ...
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This chapter proves the theory that a permanent increase in payroll taxes used to finance government purchases in a small open economy that takes the external rate of interest as given is neutral for employment in the long run. However, if the economy in question is large, in the sense that an increase in its borrowing in the world capital market pushes up the world interest rate, the neutrality breaks down. In the large open economy case, the higher world interest rate, in lowering the after-tax wage to unearned income ratio, reduces permanently the number of hours supplied. The chapter also addresses the Faggio–Nickell puzzle that despite higher labor taxes in both the group of Scandinavian countries (Denmark, Finland, and Sweden) and the Big Three continental countries, labor inputs fell far more in the latter than in the former over the past three decades.Less
This chapter proves the theory that a permanent increase in payroll taxes used to finance government purchases in a small open economy that takes the external rate of interest as given is neutral for employment in the long run. However, if the economy in question is large, in the sense that an increase in its borrowing in the world capital market pushes up the world interest rate, the neutrality breaks down. In the large open economy case, the higher world interest rate, in lowering the after-tax wage to unearned income ratio, reduces permanently the number of hours supplied. The chapter also addresses the Faggio–Nickell puzzle that despite higher labor taxes in both the group of Scandinavian countries (Denmark, Finland, and Sweden) and the Big Three continental countries, labor inputs fell far more in the latter than in the former over the past three decades.
Walter Armbrust
- Published in print:
- 2009
- Published Online:
- September 2011
- ISBN:
- 9789774162893
- eISBN:
- 9781617970269
- Item type:
- chapter
- Publisher:
- American University in Cairo Press
- DOI:
- 10.5743/cairo/9789774162893.003.0016
- Subject:
- Political Science, International Relations and Politics
Filmgoing in downtown Cairo had long taken place in the gap between official hopes for cinema as a vehicle for socially edifying purposes, and the unpredictable reality of audiences in movie ...
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Filmgoing in downtown Cairo had long taken place in the gap between official hopes for cinema as a vehicle for socially edifying purposes, and the unpredictable reality of audiences in movie theaters. Certainly by the late 1980s, movie theaters had lost favor in the eyes of cultural gatekeepers. Male youth had taken them over. Elites willfully mischaracterized these young men as a barbarian invasion of lower-class “tradesmen,” thereby obfuscating a phenomenon that was, in reality, connected to a broad downgrading of middle-class fortunes in the post-Nasser era. As open-market economies inexorably became the only policy choice on offer, promises made in an earlier era of social advancement through education began to ring hollow. The life stage of the “student” began to look like a prison sentence as it elongated into eternity, while marriage—traditionally the boundary between childhood and adulthood—receded into the distance.Less
Filmgoing in downtown Cairo had long taken place in the gap between official hopes for cinema as a vehicle for socially edifying purposes, and the unpredictable reality of audiences in movie theaters. Certainly by the late 1980s, movie theaters had lost favor in the eyes of cultural gatekeepers. Male youth had taken them over. Elites willfully mischaracterized these young men as a barbarian invasion of lower-class “tradesmen,” thereby obfuscating a phenomenon that was, in reality, connected to a broad downgrading of middle-class fortunes in the post-Nasser era. As open-market economies inexorably became the only policy choice on offer, promises made in an earlier era of social advancement through education began to ring hollow. The life stage of the “student” began to look like a prison sentence as it elongated into eternity, while marriage—traditionally the boundary between childhood and adulthood—receded into the distance.
Bev Dahlby
- Published in print:
- 2008
- Published Online:
- August 2013
- ISBN:
- 9780262042505
- eISBN:
- 9780262271141
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262042505.003.0007
- Subject:
- Economics and Finance, Econometrics
This chapter investigates the optimal taxation treatment of the return to capital in a small open economy using the marginal cost of public funds concept. It uses a simple two-period life cycle model ...
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This chapter investigates the optimal taxation treatment of the return to capital in a small open economy using the marginal cost of public funds concept. It uses a simple two-period life cycle model to examine one of the most hotly contested tax policy issues: whether governments should levy income taxes or consumption taxes. The optimal tax rule from the Corlett and Hague model—tax at a higher rate the good that is most complementary with leisure—implies that there should be a tax on the return on savings if future consumption is more complementary with leisure than current consumption. This insight, stemming from the work of Feldstein (1978) and Atkinson and Sandmo (1980), provides an alternative intuitive explanation of the optimal tax treatment of savings.Less
This chapter investigates the optimal taxation treatment of the return to capital in a small open economy using the marginal cost of public funds concept. It uses a simple two-period life cycle model to examine one of the most hotly contested tax policy issues: whether governments should levy income taxes or consumption taxes. The optimal tax rule from the Corlett and Hague model—tax at a higher rate the good that is most complementary with leisure—implies that there should be a tax on the return on savings if future consumption is more complementary with leisure than current consumption. This insight, stemming from the work of Feldstein (1978) and Atkinson and Sandmo (1980), provides an alternative intuitive explanation of the optimal tax treatment of savings.
Annuska Derks
- Published in print:
- 2008
- Published Online:
- November 2016
- ISBN:
- 9780824831288
- eISBN:
- 9780824869182
- Item type:
- book
- Publisher:
- University of Hawai'i Press
- DOI:
- 10.21313/hawaii/9780824831288.001.0001
- Subject:
- Anthropology, Asian Cultural Anthropology
This book offers a fascinating ethnography of young Cambodian women who move from the countryside to work in Cambodia's capital city, Phnom Penh. Female migration and urban employment are rising, ...
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This book offers a fascinating ethnography of young Cambodian women who move from the countryside to work in Cambodia's capital city, Phnom Penh. Female migration and urban employment are rising, triggered by Cambodia's transition from a closed socialist system to an open market economy. This book challenges the dominant views of these young rural women—that they are controlled by global economic forces and national development policies or trapped by restrictive customs and Cambodia's tragic history. The book shows instead how these women shape and influence the processes of change taking place in present-day Cambodia. Based on field research among women working in the garment industry, prostitution, and street trading, the book explores the complex interplay between their experiences and actions, gender roles, and the broader historical context. The focus on women involved in different kinds of work allows new insight into women's mobility, highlighting similarities and differences in working conditions and experiences. Young women's ability to utilize networks of increasing size and complexity allows them to move into and between geographic and social spaces that extend far beyond the village context. Women's mobility is further expressed in the flexible patterns of behavior that young rural women display when trying to fulfill their own “modern” aspirations along with their family obligations and cultural ideals.Less
This book offers a fascinating ethnography of young Cambodian women who move from the countryside to work in Cambodia's capital city, Phnom Penh. Female migration and urban employment are rising, triggered by Cambodia's transition from a closed socialist system to an open market economy. This book challenges the dominant views of these young rural women—that they are controlled by global economic forces and national development policies or trapped by restrictive customs and Cambodia's tragic history. The book shows instead how these women shape and influence the processes of change taking place in present-day Cambodia. Based on field research among women working in the garment industry, prostitution, and street trading, the book explores the complex interplay between their experiences and actions, gender roles, and the broader historical context. The focus on women involved in different kinds of work allows new insight into women's mobility, highlighting similarities and differences in working conditions and experiences. Young women's ability to utilize networks of increasing size and complexity allows them to move into and between geographic and social spaces that extend far beyond the village context. Women's mobility is further expressed in the flexible patterns of behavior that young rural women display when trying to fulfill their own “modern” aspirations along with their family obligations and cultural ideals.
Craig Berry
- Published in print:
- 2011
- Published Online:
- July 2012
- ISBN:
- 9780719084881
- eISBN:
- 9781781701850
- Item type:
- chapter
- Publisher:
- Manchester University Press
- DOI:
- 10.7228/manchester/9780719084881.003.0005
- Subject:
- Political Science, UK Politics
This chapter notes that the IFSL is obviously closely associated with neoliberal ideology. It is a membership organisation for financial service providers—the focus here is on its leadership and ...
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This chapter notes that the IFSL is obviously closely associated with neoliberal ideology. It is a membership organisation for financial service providers—the focus here is on its leadership and secretariat. IFSL is strongly committed to trade liberalisation and valorises an open global economy. The second section of this chapter looks at IFSL's understanding of development, trade rules and multilateralism. The third section looks directly at the concept of globalisation and asks what can be inferred from IFSL's use of the term in relation to various issues and policies, focusing in particular on spatial connotations. The discussion considers the implications of the financial crisis upon IFSL's discourse throughout.Less
This chapter notes that the IFSL is obviously closely associated with neoliberal ideology. It is a membership organisation for financial service providers—the focus here is on its leadership and secretariat. IFSL is strongly committed to trade liberalisation and valorises an open global economy. The second section of this chapter looks at IFSL's understanding of development, trade rules and multilateralism. The third section looks directly at the concept of globalisation and asks what can be inferred from IFSL's use of the term in relation to various issues and policies, focusing in particular on spatial connotations. The discussion considers the implications of the financial crisis upon IFSL's discourse throughout.
Margaret E. Peters
- Published in print:
- 2017
- Published Online:
- May 2018
- ISBN:
- 9780691174488
- eISBN:
- 9781400885374
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691174488.003.0008
- Subject:
- Political Science, International Relations and Politics
This concluding chapter examines the implications of the book's argument about immigration policy and globalization for other areas of international relations, including the study of international ...
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This concluding chapter examines the implications of the book's argument about immigration policy and globalization for other areas of international relations, including the study of international political economy, migration around the world, and the shape of the international system and foreign policy. It first considers open economy politics (OEP) in relation to how different forms of economic openness affect one another before discussing firm heterogeneity, the race to the bottom argument, and whether low-skill immigration will become as open as it was in the nineteenth century owing to technological developments. It also explores international cooperation on migration, climate change migration, the politics of internal migration, and other international issues such as the integration of the European Union, democratization and the quality of democracy, and immigration externalities and foreign intervention.Less
This concluding chapter examines the implications of the book's argument about immigration policy and globalization for other areas of international relations, including the study of international political economy, migration around the world, and the shape of the international system and foreign policy. It first considers open economy politics (OEP) in relation to how different forms of economic openness affect one another before discussing firm heterogeneity, the race to the bottom argument, and whether low-skill immigration will become as open as it was in the nineteenth century owing to technological developments. It also explores international cooperation on migration, climate change migration, the politics of internal migration, and other international issues such as the integration of the European Union, democratization and the quality of democracy, and immigration externalities and foreign intervention.
Giancarlo Corsetti and Bartosz Maćkowiak (eds)
- Published in print:
- 2005
- Published Online:
- February 2013
- ISBN:
- 9780226194554
- eISBN:
- 9780226194578
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226194578.003.0004
- Subject:
- Economics and Finance, International
This chapter provides an exposition of the synthetic model, highlighting how it enhances one's understanding of the effects of denomination and maturity of public debt more generally. The starting ...
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This chapter provides an exposition of the synthetic model, highlighting how it enhances one's understanding of the effects of denomination and maturity of public debt more generally. The starting point is the experiment of Paul Krugman, Robert Flood, and Peter Garber in an economy with a fixed exchange rate and public debt (domestic- and foreign-currency, short- and long-term). The chapter postulates an exogenous disturbance that decreases the present value of government's real primary surpluses relative to its outstanding liabilities. It analyzes the dynamics of adjustment and models fiscal policy as non-Ricardian and monetary policy as pursuing an interest rate rule. The chapter summarizes the insights from the synthetic model: insufficient fiscal discipline can undermine currency stability independently of any need for seigniorage revenues. The chapter contributes a simple illustration of this point in the context of a small open-economy model with money introduced in a standard way.Less
This chapter provides an exposition of the synthetic model, highlighting how it enhances one's understanding of the effects of denomination and maturity of public debt more generally. The starting point is the experiment of Paul Krugman, Robert Flood, and Peter Garber in an economy with a fixed exchange rate and public debt (domestic- and foreign-currency, short- and long-term). The chapter postulates an exogenous disturbance that decreases the present value of government's real primary surpluses relative to its outstanding liabilities. It analyzes the dynamics of adjustment and models fiscal policy as non-Ricardian and monetary policy as pursuing an interest rate rule. The chapter summarizes the insights from the synthetic model: insufficient fiscal discipline can undermine currency stability independently of any need for seigniorage revenues. The chapter contributes a simple illustration of this point in the context of a small open-economy model with money introduced in a standard way.
Gerardo Esquivel and Graciela Márquez
- Published in print:
- 2007
- Published Online:
- February 2013
- ISBN:
- 9780226185002
- eISBN:
- 9780226185033
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226185033.003.0010
- Subject:
- Economics and Finance, International
This chapter focuses on an economy that was recently opened and which has been the subject of many of the empirical studies: Mexico's. Mexico substantially reduced its tariff and non-tariff barriers, ...
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This chapter focuses on an economy that was recently opened and which has been the subject of many of the empirical studies: Mexico's. Mexico substantially reduced its tariff and non-tariff barriers, starting in the mid-1980s, and later on, in the early 1990s, joined the North American Free Trade Agreement, effectively developing a very open economy. However, despite the fact that the Mexican economy was relatively closed in the early 1980s, it is not quite clear how long that had been the case. The chapter argues that, even though Mexican industry has been protected for a long period, which in some cases goes back to the late nineteenth century, the structure of protection that existed in the Mexican economy in the second half of the twentieth century came from an important modification to its commercial policy which took place around 1947.Less
This chapter focuses on an economy that was recently opened and which has been the subject of many of the empirical studies: Mexico's. Mexico substantially reduced its tariff and non-tariff barriers, starting in the mid-1980s, and later on, in the early 1990s, joined the North American Free Trade Agreement, effectively developing a very open economy. However, despite the fact that the Mexican economy was relatively closed in the early 1980s, it is not quite clear how long that had been the case. The chapter argues that, even though Mexican industry has been protected for a long period, which in some cases goes back to the late nineteenth century, the structure of protection that existed in the Mexican economy in the second half of the twentieth century came from an important modification to its commercial policy which took place around 1947.
