scholarly journals Welfare implications of mitigating investment uncertainty

2021 ◽  
Author(s):  
Takayuki Ogawa ◽  
Jun Sakamoto
Keyword(s):  
Financial Markets ◽  
Government Spending ◽  
Income Redistribution ◽  
Welfare Effects ◽  
Welfare Gains ◽  
Income Transfers ◽  
Welfare Implications ◽  
Pareto Improving

AbstractThis study explores the welfare implications of mitigating investment uncertainty in the context of Easley and O’Hara (Rev Financ Stud 22:1817–1843, 2009) While one may expect welfare gains by encouraging participation in financial markets by ambiguity-averse investors, we formally show that it hurts other investors and thus is not Pareto-improving without appropriate income transfers. We also examine the welfare effects of income redistribution among heterogeneous investors and government spending on investor education.

Transitioning to a higher retirement age with exponential and quasi-hyperbolic discounters in mixed economies

2020 ◽  
Author(s):  
Sarah Lynne Salvador Daway-Ducanes
Keyword(s):  
Overlapping Generations ◽  
Hyperbolic Discounting ◽  
Welfare Effects ◽  
Retirement Age ◽  
Tax Rate ◽  
Welfare Impacts ◽  
The Social ◽  
Welfare Implications ◽  
Pension Benefits ◽  
Exponential Discounting

Abstract This paper analyses the macroeconomic and welfare effects of a higher retirement age within a dynamic overlapping generations framework, wherein exponential discounting and sophisticated quasi-hyperbolic discounting agents coexist in ‘mixed economies’. The transitional dynamics of economic aggregates depend on the proportion of QHD agents, and the extent to which reducing the social security tax rate mitigates crowding-out effects on savings and enables both lower pension contributions and higher pension benefits. Welfare impacts across agent types and cohorts differ accordingly: QHD agents employ the higher retirement age as a commitment mechanism to mitigate the adverse welfare implications of present-biasedness.

scholarly journals Synergies in the Land Use Sector: What Is the Best Policy Approach When Co-benefits and Trade-offs Are Involved?

2020 ◽  
Vol 6 (53) ◽  
pp. 53-69
Author(s):  
Martin Lopez
Keyword(s):  
Land Use ◽  
Integrated Approach ◽  
Integral Approach ◽  
Welfare Gains ◽  
Deep Uncertainty ◽  
Adaptation Measures ◽  
Address Climate Change ◽  
Mitigation And Adaptation ◽  
Trade Offs ◽  
Welfare Implications

AbstractMitigation and adaptation are the main strategies to address climate change. Both of them are interrelated instruments and key elements of an integral approach to tackle the phenomenon. This interrelation is particularly strong in the land use sector, an area in which practically any policy has a significant effect on the goals of both strategies. Yet, in practice, mitigation and adaptation are treated as two different instruments. A poor understanding about the interactions between the mentioned strategies remains as a barrier to implement the integrated approach. To contribute to fill-in this knowledge gap, a hypothetical ecologic-economic system simulated under deep uncertainty was used to test environmental and welfare implications of different policy configurations. Taking the unregulated economy as a benchmark, the outcomes of the mentioned interventions were classified as synergies or different forms of trade-offs. Results indicate that measures based on internalization of externalities overcame monetary compensation schemes. Moreover, when externalities were corrected, synergies were more frequent and associated to higher environmental and welfare gains. Furthermore, the policy configuration that exhibited best synergic properties was an intervention integrating mitigation and adaptation measures. This indicates that synergies may be more accessible than previously considered, however, current policy approach and incentives may not be the best tools to trigger them.

scholarly journals Welfare Effects of Anti-Sprawl Policies in the Presence of Urban Decline

2011 ◽  
Vol 40 (3) ◽  
pp. 439-450 ◽  
Author(s):  
Antonio M. Bento ◽  
Sofia F. Franco ◽  
Daniel Kaffine
Keyword(s):  
Urban System ◽  
Welfare Effects ◽  
Urban Decline ◽  
Welfare Gains ◽  
Optimal Development ◽  
Suburban Sprawl ◽  
Lump Sum ◽  
City Core ◽  
The City

This paper extends first-best analysis of anti-sprawl policies, such as development taxes, and examines the welfare effects of development taxes in the presence of urban decline at the city core. We find that anti-sprawl policies generate several important feedbacks within the urban system, generating additional welfare gains and affecting the level of urban decline and suburban sprawl. Further, the optimal development tax exceeds the (first-best) Pigouvian level, irrespective of whether or not revenues are returned lump-sum to all landowners or earmarked for urban decline mitigation.

scholarly journals A Sequential Analysis of the Welfare Effects of Mobile Phones in Africa

2018 ◽  
Vol 37 (2) ◽  
pp. 279-290
Author(s):  
Jeffrey James
Keyword(s):  
Mobile Phones ◽  
Public Transport ◽  
Sequential Analysis ◽  
Analytical Framework ◽  
Welfare Effects ◽  
Welfare Gains ◽  
African Countries ◽  
The West ◽  
Welfare Impact ◽  
Fixed Line

The main purpose of this article is to assess the welfare effects of situations in which either mobile phone devices or SIM cards (or both) are not owned by relatively poor inhabitants of African countries. The task is pursued in a sequential analytical framework where effects at different stages of the process influence the welfare impact at later stages. Much of the analysis is conducted in different institutional circumstances from those found in the West (notably sharing and renting). Perhaps the main result of the analysis—backed by ample empirical evidence—is that the fewer are the alternatives to mobile phones as forms of communication (e.g., public transport), the greater tend to be the gains from this technology. In the particular case of leapfrogging, the fewer are fixed-line phones, the more do mobiles yield gains to poor users, whether these be individuals or actual countries. It is thus the context in addition to the technology that determines the differential welfare gains.

WELFARE EFFECTS OF PATENT PROTECTION IN A GROWTH MODEL WITH R&D AND CAPITAL ACCUMULATION

2019 ◽  
pp. 1-24
Author(s):  
Yibai Yang
Keyword(s):  
Social Welfare ◽  
Growth Model ◽  
Capital Accumulation ◽  
Patent Protection ◽  
Welfare Analysis ◽  
Welfare Effects ◽  
Us Economy ◽  
The Us ◽  
Welfare Implications ◽  
Relative Productivity

This study explores the welfare effects of patent protection in a Romer-type expanding variety model in which R&D and capital accumulation are both engines of growth. It shows that the comparison between the productivity of R&D and that of capital plays an important role in the welfare analysis. When the relative productivity of R&D compared to capital is high (low), social welfare takes an inverted-U shape for (is decreasing in) the strength of patent protection, and the welfare-maximizing degree of patent protection is no greater than (identical to) the growth-maximizing degree. Moreover, the model is calibrated to the US economy and the numerical results support these welfare implications.

scholarly journals Is Government Spending at the Zero Lower Bound Desirable?

2019 ◽  
Vol 11 (3) ◽  
pp. 147-173 ◽  
Author(s):  
Florin O. Bilbiie ◽  
Tommaso Monacelli ◽  
Roberto Perotti
Keyword(s):  
Lower Bound ◽  
Great Recession ◽  
Government Spending ◽  
Welfare Effects ◽  
Zero Lower Bound ◽  
Present Value ◽  
Government Consumption ◽  
High Consumption ◽  
The Us ◽  
Parameter Values

We build a medium-scale DSGE model and calibrate it to fit the main macroeconomic variables during the US Great Recession. Using it to evaluate the welfare effects of increasing government consumption at the zero lower bound beyond what was actually observed in the data, we reach three main results. First, the increase in government consumption after 2008, albeit small in present value terms, was close to optimal. Second, frontloading the same stimulus would have been welfare-improving. Third, larger welfare effects occur in our model for parameter values implying either large welfare costs of modest recessions (e.g., high consumption curvature), or outright large recessions. (JEL E12, E32, E43, E62, H50)

Limited-Rivalry Consumer Goods and Income Distribution – An Exploration

2001 ◽  
Author(s):  
Fredrik Anderson
Keyword(s):  
Income Distribution ◽  
Consumer Goods ◽  
Welfare Effects ◽  
Standard Theory ◽  
Pareto Improving

Consequences of market provision of consumer goods that are less than fully rival are explored. The feedbacks introduced by limited rivalry are shown to interact with income distribution in ways absent from standard theory. Specifically, it is shown that there may be scope for Pareto improving redistributions, but that the direction of welfare effects of redistributions depend on the number of consumers buying the limitedly rival good. The results are argued to throw light on notions such as innovation and Keynesian underemployment.

An urban labor market with frictional housing markets: theory and an application to the Paris urban area

2020 ◽  
Author(s):  
Guillaume Chapelle ◽  
Etienne Wasmer ◽  
Pierre-Henri Bono
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Demand Curve ◽  
Labor Demand ◽  
Housing Markets ◽  
Welfare Effects ◽  
Welfare Gains ◽  
The Cost ◽  
Competitive Pricing ◽  
Urban Labor Market

Abstract We build a tractable model of frictional labor markets and segmented housing markets to study welfare effects of regulations, including spatial misallocation and deviation from competitive pricing of rents. The model is summarized by a labor demand curve depending on rents and wages, a wage curve reflecting labor market tightness and rents, and finally a rent curve reflecting employment. In this economy, the rent gradient in the flexible rent sector is higher than in a purely competitive housing market. This leads to spatial misallocation due to some employees commuting too much and some non-employed living inefficiently close to jobs. In turn, reducing generalized commuting costs reduces the rent gradient in the flexible rent sector and the cost of spatial misallocation of workers. The reduction in market rents is maximal when labor markets are less frictional and housing markets are more frictional, and welfare gains are larger when both are more efficient.

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