Rent Capture in an Individual Transferable Quota Fishery

1992 ◽  
Vol 49 (3) ◽  
pp. 497-503 ◽  
Author(s):  
R. Quentin Grafton
Keyword(s):  
Theoretical Model ◽  
Economic Efficiency ◽  
Risk Sharing ◽  
Economic Rent ◽  
Net Returns ◽  
Individual Transferable Quota ◽  
Long Run

The problem of capturing economic rent in a fishery regulated by an individual transferable quota scheme is addressed using a profit tax and a quota tax as two methods of rent collection. Using a theoretical model of a fishery with representative fishers employing different harvesting functions, the effects of the taxes are evaluated with respect to their ability to capture rent, flexibility to adjust to changes in the fishery, effects upon economic efficiency, the burden of taxation on different fishers, and ease of implementation. A quota tax is shown to be preferred over a comparable profit tax by those fishers who earn the highest average net returns on quota owned. A quota tax also has the potential to allow fishers to capture the full benefits of efficiency improvements. The profit tax can allow for greater risk sharing between the regulator and fishers and is able to capture the entire rent in the fishery in both the short and long run.

Risk sharing, regional stabilization, and redistribution: the role of fiscal mechanisms in Switzerland

2020 ◽  
Author(s):  
Lars P Feld ◽  
Christoph A Schaltegger ◽  
Janine Studerus
Keyword(s):  
Federal Government ◽  
Risk Sharing ◽  
Panel Data Analysis ◽  
Pension Scheme ◽  
Income Differentials ◽  
Fiscal Autonomy ◽  
Long Run ◽  
Regional Stabilization ◽  
High Level ◽  
Government Transfers

Abstract This paper analyses the importance of fiscal mechanisms for regional stabilization and redistribution in Switzerland. Switzerland is particularly interesting in this context because it features both a high level of fiscal autonomy for Swiss cantons, and explicit fiscal transfers between the federal government and the cantons. Based on a panel data analysis, we study the redistributive and stabilizing properties of fiscal equalization transfers, federal government transfers in general, direct federal taxation, the unemployment insurance scheme, and the first pillar pension scheme. We find a combined redistributive effect of these mechanisms of about 20%. This means that long-run income differentials of 1 Swiss franc between cantons translate into differences of long-run disposable income after taxes and transfers of about 80 cents. The combined contemporary stabilization effect with respect to short-term income fluctuations amounts, at best, to 10%, which is a small effect compared to previous findings for other countries.

scholarly journals Growth and distribution endogenously determined: a theoretical model and empirical evidence

2019 ◽  
Vol 39 (2) ◽  
pp. 344-361
Author(s):  
HERNÁN BORRERO ◽  
NESTOR GARZA
Keyword(s):  
Theoretical Model ◽  
Latin American ◽  
Empirical Literature ◽  
Growth Theory ◽  
Extended Model ◽  
Aggregate Production ◽  
Long Run ◽  
Aggregate Production Function ◽  
Asset Distribution ◽  
Latin American Countries

ABSTRACT We build upon an already known but scarcely developed feature of growth theory: the importance of asset distribution in an aggregate production function. We elaborate on a simple model of two individuals, and then generalize its deductions to an extended model of n agents, concluding that perfectly distributed productive capital leads to positive and optimum long-run “endogenous” growth. Recent and classical empirical literature on the topic suggests this interpretation. In addition, we find exploratory panel data evidence that supports our theory of growth and distribution in a set of Latin American countries.

On financial liberalization and long-run risk sharing

2016 ◽  
Vol 148 ◽  
pp. 31-40
Author(s):  
Mark J. Holmes ◽  
Jesús Otero
Keyword(s):  
Risk Sharing ◽  
Financial Liberalization ◽  
Long Run ◽  
Long Run Risk

scholarly journals Human agency and infection rates: Implications for social distancing during epidemics

PLoS ONE ◽  
2020 ◽  
Vol 15 (12) ◽  
pp. e0243699
Author(s):  
Christopher Bronk Ramsey
Keyword(s):  
Theoretical Model ◽  
Infection Rate ◽  
Herd Immunity ◽  
Contact Tracing ◽  
Specific Level ◽  
Social Distancing ◽  
Long Run ◽  
Social Settings ◽  
Wide Range ◽  
Almost All

Social distancing is an important measure in controlling epidemics. This paper presents a simple theoretical model focussed on the implications of the wide range in interaction rates between individuals, both within the workplace and in social settings. The model is based on well-mixed populations and so is not intended for studying geographic spread. The model shows that epidemic growth rate is largely determined by the upper interactivity quantiles of society, implying that the most efficient methods of epidemic control are interaction capping approaches rather than overall reductions in interaction. The theoretical model can also be applied to look at aspects of the dynamics of epidemic progression under various scenarios. The theoretical model suggests that with no intervention herd immunity would be achieved with a lower overall infection rate than if variation in interaction rate is ignored, because by this stage almost all the most interactive members of society would have had the infection; however the overall mortality with such an approach is very high. Scenarios for mitigation and suppression suggest that, by using interactivity capping, it should be possible to control an epidemic without extreme sanctions on the majority of the population if R0 of the uncontrolled infection is 2.4. However to control the infection rate to a specific level will always require measures to be switched on and off and for this reason elimination is likely to be a less costly policy in the long run. While social distancing alone can be used for elimination, it would not on its own be an efficient mechanism to prevent reinfection. The use of robust testing, quarantining, and contact tracing would strengthen any social distancing measures, speed up elimination, and be a better tool for the prevention of infection or reinfection. Because the analysis presented here is theoretical, and not data-driven, it is intended to be a stimulus for further data-collection, particularly on individual interactivity levels, and for more comprehensive modelling which takes account of the type of heterogeneity discussed here. While there are some clear lessons from the simple model presented here, policy makers should have these tested and validated by epidemiological specialists before acting on them.

scholarly journals Public-Private Partnerships: When Ethics and Policy Making are an Afterthought

2017 ◽  
Vol 3 (2) ◽  
Author(s):  
Nathalie Burlone
Keyword(s):  
Public Interest ◽  
Public Management ◽  
Risk Sharing ◽  
Policy Making ◽  
New Public Management ◽  
Policy Instrument ◽  
Policy Formulation ◽  
Public Private Partnerships ◽  
Contract Duration ◽  
Long Run

The interest of governments in public-private partnerships (P3s) has increased in the last decade. In Canada, this fervor is no exception; decision makers recognize an ideal tool of governance, in the logic of the “new public management.” While academic literature has focused on the actual benefits or problems associated with this form of service delivery - namely cost calculations, risk sharing, contract duration and efficiency - little attention has been paid to the ethical character of this policy instrument. As far as public management in general is concerned, ethics is generally an afterthought (Ghere, 1996). Where P3s are concerned, this quote is even more relevant. Given the efficiency mantra at the heart of P3s as a new policy instrument, it is no wonder that questions of values and public interest come second to promised or expected financial savings sought by political leaders. In order to tackle the role of ethics in public-private partnerships, this article takes a policy formulation stance and stresses the conflicts of values at the heart of this political choice and the challenges it involves for public interest and policy making in the long run.

scholarly journals An Empirical Note on the Long-Run Effects of Public and Private R&D on TFP

2021 ◽  
Author(s):  
Dierk Herzer
Keyword(s):  
Theoretical Model ◽  
Private Sector ◽  
Alternative Measure ◽  
Public And Private ◽  
The Public ◽  
Panel Methods ◽  
Simple Theoretical Model ◽  
Long Run ◽  
Empirical Note ◽  
Public And Private Sector

AbstractSeveral studies have examined the long-run effects of public and private R&D on TFP with mixed results. A common feature of these studies is that they measure public and private R&D activity using perpetual inventory stocks of public and private R&D capital, constructed under the assumption that the prices of GDP, public R&D, and private R&D move identically. This note argues that the results of these studies may be biased if the assumption of identical price movements is violated. The purpose and main contribution of this note is to estimate the long-run elasticities of TFP with respect to public and private R&D using both the stock of public/private R&D capital and an alternative measure of public/private R&D activity: the number of public/private sector researchers. In addition, this study contributes to the literature by developing a simple theoretical model that formalizes the intuition of how public and private R&D affect TFP, and by using both traditional and more recent panel methods. Contrary to previous studies, it is found—using numbers of researchers in the public and private sector—that there is strong evidence both of a significant positive long-run effect of both public and private R&D on TFP and of a greater effect of public R&D than private R&D. Consistent with the mixed evidence reported in the literature, it is also found that the use of public and private R&D stocks yields mixed results regarding the long-run effects of public and private R&D on TFP.

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