著者
TATSUO HATTA
出版者
JAPANESE ECONOMIC ASSOCIATION
雑誌
The Economic Studies Quarterly (ISSN:0557109X)
巻号頁・発行日
vol.45, no.3, pp.196-212, 1994-09-20 (Released:2008-02-28)
参考文献数
27

Practitioners of tariff reforms have been recommending tariff reforms toward uniformity since they fear that divergences among tariff rates cause price distortions among imports. On the other hand, the optimal tax theorists have been insisting that the revenue-constrained optimum tariff structure must be non-uniform. The present paper formalizes practitioner's hunch within the framework of the optimum tax theory. Using this formulation, the paper observes that the uniform tariff structure must be a good approximation of the revenue-constrained optimum tariff structure as long as substitutability among commodities is dominant.
著者
HENRIK DAHL SHANTAYANAN DEVARAJAN SWEDER VAN WIJNBERGEN
出版者
JAPANESE ECONOMIC ASSOCIATION
雑誌
The Economic Studies Quarterly (ISSN:0557109X)
巻号頁・発行日
vol.45, no.3, pp.213-226, 1994-09-20 (Released:2008-02-28)
参考文献数
14

This paper addresses the issue of revenue constrained partial tariff reform. We derive instructive formulae clarifying the optimal structure of revenue raising tariffs. We demonstrate the importance of net import demand elasticities and complementarity with untaxed export goods. We further analyze the empirically important case of revenue raising tariffs in the presence of distortionary producer taxes. These are shown to modify the optimal tariff structure in an intuitive manner. We then conduct numerical experiments with an eleven sector general equilibrium model of Cameroon. We calculate optimal revenue constrained tariffs and compare them with the uniform rate that generates the same revenue. In addition, we calculate the social cost of changing individual tariff rates. Our major conclusion is that replacing the existing tariff structure with a uniform rate can lead to significant welfare losses as long as the other taxes in the economy remain suboptimal. If, however, the rest of the taxes are set optimally, then a uniform tariff rate is very close to the optimum, even in a revenue-constrained economy. We also find that changes in individual tariff rates can have very different implications for social welfare-in sign as well as in magnitude-when compared to complete tariff reform.
著者
ARVIND PANAGARIYA
出版者
JAPANESE ECONOMIC ASSOCIATION
雑誌
The Economic Studies Quarterly (ISSN:0557109X)
巻号頁・発行日
vol.45, no.3, pp.227-245, 1994-09-20 (Released:2008-02-28)
参考文献数
37

This paper offers an intuitive but rigorous analysis of the uniform-tariff issue under a variety of circumstances, Among the areas covered are the role of the policy objective, importance of imported inputs and the relevance of political-economy considerations. The main conclusions of the paper maybe summarized as follows. Assuming fixed endowments and no domestic taxes, optimum tariffs for raising a fixed revenue are nonuniform. In this setting, revenue-neutral trade taxes include tariffs and subsidies on intermediate inputs. Broadly speaking, tariffs on intermediate inputs combined with duty drawbacks on exports are welfare improving both with and without revenue constraint. As a general rule, a policy change that causes the output to fall and consumption to rise in the protected sector is welfare improving. An important conclusion of the paper is that the conventional efficiency criteria point towards nonuniformity in tariffs while transparency, administrative convenience and political economy considerations point in the opposite direction. A compromise solution favored in the paper is the use of a limited number of tariff rates, say three, to exploit efficiency gains from differential tariffs without sacrificing too much on other objectives such as administrative simplicity and minimization of directly unproductive profitseeking activities.
著者
ROBERT G. CHAMBERS
出版者
JAPANESE ECONOMIC ASSOCIATION
雑誌
The Economic Studies Quarterly (ISSN:0557109X)
巻号頁・発行日
vol.45, no.3, pp.246-264, 1994-09-20 (Released:2008-02-28)
参考文献数
26

The optimal design of tariff policies is considered in a simple general-equilibrium model that reflects many of the real-world constraints placed on tariff design and reform. Sufficient conditions for an uniform tariff structure to be optimal are deduced, these involve quasi-separability of the trade-expenditure function. A number of partial tariff-reform measures are considered. Determining the appropriate direction that tariff reform should take depends critically upon the marginal effect raising or lowering a tariff has on the production of importables and exportables.
著者
PRADEEP K. MITRA
出版者
JAPANESE ECONOMIC ASSOCIATION
雑誌
The Economic Studies Quarterly (ISSN:0557109X)
巻号頁・発行日
vol.45, no.3, pp.265-287, 1994-09-20 (Released:2008-02-28)
参考文献数
25

This paper lays out an analytical framework which is general enough to encompass two prominent approaches to trade policy analysis in developing countries. These are (1) the Ramsey-Samuelson-Diamond-Mirrlees public finance tradition as applied to open economies and (2) the effective protection tradition stemming from the work of Balassa and Corden. Such a unified perspective emphasizes the critical role of assumptions about domestic fiscal instruments in the appropriateness of trade policy advice. The paper obtains analytical characterizations of desirable protective and revenue-raising trade taxes in various circumstances and, inter alia, identifies directions of reform. The quantitative significance of these ideas is illustrated by calculating such tariffs in a general equilibrium model of the Indian economy.
著者
SHUANGLIN LIN
出版者
JAPANESE ECONOMIC ASSOCIATION
雑誌
The Economic Studies Quarterly (ISSN:0557109X)
巻号頁・発行日
vol.45, no.4, pp.289-305, 1994-12-20 (Released:2007-10-19)
参考文献数
18

This paper studies the effects of budget deficits in a two-country OG model where the rates of time preference differ across countries. It is shown that time preference plays an important role in the determination of the effects of budget deficits on the trade and current account deficits. If the time preferences are identical, then a domestic tax-increase will unambiguously increase its trade surplus, and will decrease (increase) its current account surplus when the real interest rate is greater (less) than the growth rate; but if the time preferences are not identical, then a domestic tax-increase can yield completely different results. In addition, this paper clearly demonstrates that a tax-increase will unambiguously lower the real interest rate.
著者
HIKARU HASEGAWA
出版者
JAPANESE ECONOMIC ASSOCIATION
雑誌
The Economic Studies Quarterly (ISSN:0557109X)
巻号頁・発行日
vol.45, no.4, pp.306-320, 1994-12-20 (Released:2007-10-19)
参考文献数
11

In this paper, following Tiao, Tan and Chang (1977), we consider a constrained bivariate linear regression model and introduce two types of estimators after a preliminary test of independence of two equations. One of them is a pre-test estimator using an unrestricted estimator of covariance matrix and the other is one using a restricted estimator of covariance matrix. We derive their risks and compare sampling performances of several estimators.
著者
ANAND RAJARAM
出版者
JAPANESE ECONOMIC ASSOCIATION
雑誌
The Economic Studies Quarterly (ISSN:0557109X)
巻号頁・発行日
vol.45, no.4, pp.321-338, 1994-12-20 (Released:2007-10-19)
参考文献数
4

This paper reports the results of a selective review intended to evaluate the extent to which an integrated “public finance” perspective, incorporating both protection and revenue concerns, has guided World Bank recommendations to member countries in the atea of tariff reform. Such a perspective suggests that tariff reforms intended to reduce protection must often be accompanied by measures to develop alternative revenue sources in broad based domestic indirect taxes. Conversely, reforms to the structure of protection will often need to take account of the effect of domestic indirect taxes that discriminate between domestic and imported goods.The review suggests that this integrated perspective is often absent from the analysis underlying typical Bank recommendations. The following broad conclusions are indicated: (a) revenue concerns are not adequately addressed in the design of tariff proposals and may, in some cases, have contributed to policy reversal; (b) the protective effect of some domestic indirect taxes is often not incorporated into the design of reforms intended to reduce protection; and (c) while a uniform tariff is sometimes recommended as a goal of tariff reform, and may be seen as a logical culmination of the attempt to narrow the range of nominal tariffs, there appears to be little consensus on a desirable tariff structure.
著者
SHINJI OHSETO
出版者
JAPANESE ECONOMIC ASSOCIATION
雑誌
The Economic Studies Quarterly (ISSN:0557109X)
巻号頁・発行日
vol.45, no.2, pp.97-105, 1994-06-20 (Released:2008-02-28)
参考文献数
10

Recently it was shown that any social choice correspondence which can be implemented in undominated strategies by a bounded mechanism satisfies an incentive-compatibilitytype condition called strategy-resistance. In this paper we show that the plurality correspondence is implemented in undominated strategies by a bounded mechanism if and only if n=2 or #A=2 (n is the number of agents and #A is the number of outcomes), although it is strategy-resistant if and only if n and #A satisfy one of following four conditions: (i) n=2, (ii) #A=2, (iii) n=3, #A_??_3, (iv) n=5, #A=3. These results imply that strategy-resistance is not a sufficient condition. We also describe Nash-type implementability of the plurality correspondence.
著者
MASAMICHI KAWANO
出版者
JAPANESE ECONOMIC ASSOCIATION
雑誌
The Economic Studies Quarterly (ISSN:0557109X)
巻号頁・発行日
vol.45, no.2, pp.106-118, 1994-06-20 (Released:2008-02-28)
参考文献数
9

A big firm is aiming to enter a small and growing market. When should this entry be permitted for the benefit of the consumers and the incumbent firm? We consider this problem in the framework of continuous dynamics. The entrant is a big firm that commits to keep its large level of capital constant. Hence the large firm will have the stronger position in the market compared with the incumbent firm.Given the entry time announced by the government, the incumbent accumulates capital so as to maximize profit over time. Given the optimal dynamic behavior of the firm, the government decides the entry timing.We will deduce the feature of this optimal timing and that the timing becomes earlier (or later) when the government evaluates the consumer's surplus more (or less) relatively to the producer's.
著者
HIDEO KONISHI
出版者
JAPANESE ECONOMIC ASSOCIATION
雑誌
The Economic Studies Quarterly (ISSN:0557109X)
巻号頁・発行日
vol.45, no.2, pp.119-130, 1994-06-20 (Released:2008-02-28)
参考文献数
10

This paper examines the welfare effect of a tax reform policy which diversifies the commodity tax rates in a three good economy with pure profit. If the commodity taxes are uniform initially, it is welfare improving to raise the tax on the commodity whose demand is more complementary with leisure and whose supply is more inelastic to wage. The formula we obtain treats the supply and the demand sides symmetrically. Furthermore, we can show that if the tax reform is welfare improving, then it increases labor supply in the economy, too. If the commodity tax rates are widely diversified, replacing commodity taxes by a wage income tax is welfare improving even in an economy with pure profit.
著者
ENGELBERT J. DOCKNER HARUTAKA TAKAHASHI
出版者
JAPANESE ECONOMIC ASSOCIATION
雑誌
The Economic Studies Quarterly (ISSN:0557109X)
巻号頁・発行日
vol.45, no.2, pp.131-140, 1994-06-20 (Released:2008-02-28)
参考文献数
24

In this paper we deal with dynamic Cournot competition and explore the relationship between the stability properties of an equilibrium path and quasi-competitive behavior of the market. More precisely we show that the stability conditions introduced for the static case ensure global convergence of a unique dynamic equilibrium path towards the steady state and quasi-competitiveness of the entire equilibrium path in the neighborhood of the steady state as well as the stationary state itself.
著者
YASUO MAEDA
出版者
JAPANESE ECONOMIC ASSOCIATION
雑誌
The Economic Studies Quarterly (ISSN:0557109X)
巻号頁・発行日
vol.45, no.2, pp.141-158, 1994-06-20 (Released:2008-02-28)
参考文献数
14

Understanding what accounts for the relationship between monetary measures and the output of the economy is one of the basic issues of macroeconomics. It has been argued that there exists a positive relationship between money and output. However, in most general equilibrium models, money is neutral in the sense that monetary measures affect price levels but not output (in the long-run or when it is expected). Money in those models is outside money. King and Plosser (1984), however, found that the correlation between money and output is primarily with inside money. In this paper, as the first step in the study to investigate the relationship between monetary measures and output, a rigorous general equilibrium model in which inside money and outside money coexist is constructed. The dependence of the steady-state value of inside money and output on parameters which describe the environment of the economy is also studied.
著者
YOSHIHIRO KANEKO
出版者
JAPANESE ECONOMIC ASSOCIATION
雑誌
The Economic Studies Quarterly (ISSN:0557109X)
巻号頁・発行日
vol.45, no.2, pp.159-178, 1994-06-20 (Released:2008-02-28)
参考文献数
35

Using a version of two-asset optimal lifetime consumption model with human wealth, we analyze the effect of income tax on interest on portfolio selection and savings rate as compared to that of capital gains tax and the combined effect of the two taxes. We suggest a method of measuring the welfare cost of capital income taxes in this life-cycle setting and apply it to Japanese workers households classified by cohort. We calculate the ratio of compensation to lifetime expenditures considered as a measurement of the welfare cost. Households who bear these taxes would pay this ratio of lifetime consumption expenditures before taxation so as to avoid remaining the post-tax level of utility. The estimation results show that the welfare cost of both income tax on interest and capital gains tax is between 3% and 7% of the sum of lifetime expenditures at each period after taxation.
著者
PETER T. KIM
出版者
JAPANESE ECONOMIC ASSOCIATION
雑誌
The Economic Studies Quarterly (ISSN:0557109X)
巻号頁・発行日
vol.45, no.2, pp.179-191, 1994-06-20 (Released:2008-02-28)
参考文献数
16

This paper examines the limiting distribution of estimates of cumulant spectral densities. The proposed estimator of the cumulant spectral density is constructed by replacing product moments with estimates of product moments according to the definition of the cumulant, followed by taking a weighted Fourier transform of these estimated cumulants. Kim (1989) showed this estimator to be consistent. Under stationarity and ρ-mixing, asymptotic normality is shown to obtain.
著者
YASUO UEKAWA
出版者
JAPANESE ECONOMIC ASSOCIATION
雑誌
The Economic Studies Quarterly (ISSN:0557109X)
巻号頁・発行日
vol.45, no.1, pp.1-13, 1994-03-18 (Released:2008-02-28)
参考文献数
14

The following duopoly model of trade will be considered. There are two goods (0 and 1). Good 0 is produced by perfectly competitive firms and good 1 is produced with nonlinear cost functions by a domestic firm and a foreign firm, each following the Cournot behavior. The home country can consider an import tariff and/or an export subsidy as policy instru-ments. In this paper we shall consider the full optimum and some constrained optima where only one instrument is available and examine effects on national and world welfare of a change in the domestic import tariff or export subsidy.
著者
HIROAKI HAYAKAWA
出版者
JAPANESE ECONOMIC ASSOCIATION
雑誌
The Economic Studies Quarterly (ISSN:0557109X)
巻号頁・発行日
vol.45, no.1, pp.14-31, 1994-03-18 (Released:2008-02-28)
参考文献数
55

This paper shows, under recursive preferences, that if a cash-in-advance constraint is formulated along the Baumol-Tobin transactions theory of liquidity preferences by considering leisure-transaction time tradeoffs, the Stockman-Abel cash-in-advance model becomes equivalent to the Sidrauski type money-in-the-utility-function model in its implications on the superneutrality of money. If such tradeoffs are extended to include production hours, a new dichotomy emerges in the sense that the effect of money growth on steady state capital intensity depends on the extent to which the marginal productivity of capital and the rate of time preference are affected.
著者
KAZUNORI OGINO
出版者
JAPANESE ECONOMIC ASSOCIATION
雑誌
The Economic Studies Quarterly (ISSN:0557109X)
巻号頁・発行日
vol.45, no.1, pp.32-40, 1994-03-18 (Released:2008-02-28)
参考文献数
21

Using the specific-factors model of a competitive small open economy, this paper shows how the standard welfare analysis of capital flows with tariffs and quotas are modified in the presence of unemployment. Employment of labor is endogenously determined and our analysis establishes a departure from the traditional results with full employment. We show several policy implications. Free trade does not necessarily lead to a welfare gain for the country and the optimal policy intervention is considered. This paper derives the conditions under which a capital inflow will help or harm a country in the cases of tariffs and quotas.
著者
ATSUSHI YOSHIDA
出版者
JAPANESE ECONOMIC ASSOCIATION
雑誌
The Economic Studies Quarterly (ISSN:0557109X)
巻号頁・発行日
vol.45, no.1, pp.55-72, 1994-03-18 (Released:2008-02-28)
参考文献数
14

This paper will propose a complementary test for the hypothesis of the term structure with risk premia and make an empirical study on the Japanese Gensaki (bond repurchase) market using daily data. This complementary test employs an idea of reasonableness of risk premia. We adopt the probability that the return from an uncertain bond is greater than the return from a sure bond as a measure of the reasonableness of risk premia The important feature of this reasonableness measure is that it does not depend upon the specification of individuals' preferences. The calculated measure shows that the hypothesis of term structure with risk premia in the Gensaki market must be doubted.