The welfare cost of vaccine misallocation, delays and nationalism

The paper provides a first analysis of market jump starting and its two-way interaction between mechanism design and participation constraints. The government optimally overpays for the legacy assets and cleans up the market of its weakest assets, through a mixture of buybacks and equity injections, and leaves the firms with the strongest legacy assets to the market. The government reduces adverse selection enough to let the market rebound, but not too much, so as to limit the cost of intervention. The existence of a market imposes no welfare cost. (JEL D82, D83, G01, G31, H81)

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The welfare cost of Japanese rice policy with home-good preference and an endogenous import price

Australian Journal of Agricultural and Resource Economics ◽

10.1111/1467-8489.12013 ◽

2013 ◽

Vol 57 (4) ◽

pp. 601-619 ◽

Cited By ~ 3

Author(s):

James Fell ◽

Donald MacLaren

Keyword(s):

Import Price ◽

Welfare Cost ◽

Rice Policy

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An analysis of US greenhouse gas cap-and-trade proposals using a forward-looking economic model

Environment and Development Economics ◽

10.1017/s1355770x10000495 ◽

2011 ◽

Vol 16 (2) ◽

pp. 155-176 ◽

Cited By ~ 6

Author(s):

ANGELO COSTA GURGEL ◽

SERGEY PALTSEV ◽

JOHN REILLY ◽

GILBERT METCALF

Keyword(s):

Greenhouse Gas ◽

Ghg Emissions ◽

Substantial Effect ◽

Welfare Cost ◽

Economic Implications ◽

Early Action ◽

Labor Tax ◽

Long Term Effect ◽

Capital Tax ◽

Forward Looking

ABSTRACTWe develop a forward-looking version of the recursive dynamic MIT Emissions Prediction and Policy Analysis (EPPA) model, and apply it to examine the economic implications of proposals in the US Congress to limit greenhouse gas (GHG) emissions. We find that shocks in the consumption path are smoothed out in the forward-looking model and that the lifetime welfare cost of GHG policy is lower than in the recursive model, since the forward-looking model can fully optimize over time. The forward-looking model allows us to explore issues for which it is uniquely well suited, including revenue-recycling and early action crediting. We find capital tax recycling to be more welfare-cost reducing than labor tax recycling because of its long-term effect on economic growth. Also, there are substantial incentives for early action credits; however, when spread over the full horizon of the policy they do not have a substantial effect on lifetime welfare costs.

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