Analysing labour productivity and its economic consequences in the two Spanish tourist archipelagos

2020 ◽  
pp. 135481662091786
Author(s):  
Federico Inchausti-Sintes ◽  
Ubay Pérez-Granja ◽  
José Juan Morales-Mohamed
Keyword(s):  
Computable General Equilibrium ◽  
Strong Dependence ◽  
Labour Productivity ◽  
Computable General Equilibrium Model ◽  
Economic Consequences ◽  
Stochastic Production Frontier ◽  
Macroeconomic Impact ◽  
Stochastic Production ◽  
Productivity Gains ◽  
Dynamic Computable General Equilibrium

The analysis of productivity in tourism has mainly focused at sectoral level. However, the strong dependence on services and its impact at macroeconomic level in tourism-led economies should require a deeper analysis of productivity, especially when faced with increased cheaper competition. This article estimates a stochastic production frontier and compares the differences in labour productivity between industrial-led and tourism-led provinces in Spain. This analysis provides novel results in terms of technological changes by differentiating industrial-led province from tourism-led province. Finally, these labour productivities are introduced in a dynamic computable general equilibrium model of the two Spanish archipelagos to analyse their respective macroeconomic impact. The results show that the increase in permanent jobs in both economies leads to a convergence in labour productivity with those that are industry led. Furthermore, labour productivity gains improve competitivity against foreign destinations and enhance sectoral diversificación. However, tourism may crowd out domestic demand and investment.

scholarly journals Sectoral Responses, Macroeconomic Impact and Household Welfare: GST Policy for Malaysia Economy

2020 ◽  
Vol 15 (1) ◽  
pp. 21-39
Author(s):  
Juliana Mohd Abdul Kadir ◽  
Mohamed Aslam Gulam Hassan ◽  
Zarinah Yusof
Keyword(s):  
Computable General Equilibrium ◽  
Government Expenditure ◽  
Computable General Equilibrium Model ◽  
Household Welfare ◽  
Government Revenue ◽  
Goods And Services ◽  
Income Groups ◽  
Negative Effect ◽  
Macroeconomic Impact ◽  
The Impact

Goods and services tax (GST) has been a controversial topic in Malaysia when it was first implemented. This study examines the impact of the GST on the Malaysian economy from three major perspectives. First, it investigates the consequent changes in sectoral responses, including output and prices for 15 main sectors. Second, the study presents the results of GST impact on seven macroeconomic variables, namely, consumption, investment, government revenue, government expenditure, export, import, and gross domestic product. Third, the results of household welfare are discussed. A computable general equilibrium model is utilized to simulate GST impact on the Malaysian economy, and a simple comparative static model is performed. The results prove that the higher the GST rate, the higher is the impact on each sector. The sectors most affected by GST are communication and ICT, and the electricity and gas sectors. By contrast, agriculture, forestry and logging, and the petroleum and natural gas sectors are the least affected. Consumption and investment receive the largest negative effect, whereas government revenue and expenditure show the largest positive effect. The study likewise finds that by lowering GST rate, the welfare loss was minimized and the higher-income groups were affected more than the lower-income groups.

What Role Will Technological Progress Play in Energy-Saving during Chinese Urbanization?

2011 ◽  
Vol 71-78 ◽  
pp. 2177-2181
Author(s):  
Ai Jun Li ◽  
Zheng Li
Keyword(s):  
Energy Efficiency ◽  
Energy Saving ◽  
Computable General Equilibrium ◽  
Technological Progress ◽  
Computable General Equilibrium Model ◽  
Financial Policy ◽  
Energy Efficiency Improvement ◽  
Policy Incentives ◽  
Dynamic Computable General Equilibrium ◽  
Technology Upgrading

This study analyzes the effects of technological progress for the elasticity of energy consumption from 2002 to 2030 in China by a dynamic computable general equilibrium model. The technological progress is represented by a combination of industrial technology upgrading and energy efficiency improvement. Household is divided into two groups as rural type and urban type. The parameters about technological progress and urbanization are all introduced exogenously. Simulation results show that vigorously pushing advanced energy efficiency technologies through financial policy incentives is the key to realize effective energy-saving achievement while promoting economic growth in China.

scholarly journals What Are the Economic and Labour Market Effects of an Income Tax Reduction Targeted at Older Workers?

2012 ◽  
Vol 2012 ◽  
pp. 1-12
Author(s):  
Maxime Fougère ◽  
Simon Harvey ◽  
Bruno Rainville
Keyword(s):  
Labour Market ◽  
Computable General Equilibrium ◽  
Older Workers ◽  
Income Tax ◽  
Labour Supply ◽  
Private Investment ◽  
Computable General Equilibrium Model ◽  
Market Effects ◽  
Tax Reduction ◽  
Macroeconomic Impact

This paper explores the economic and labour market effects of implementing a tax reduction targeted at older workers. The analysis is conducted with a life-cycle computable general equilibrium model calibrated on Canadian data. The analysis shows that implementing a permanent income tax reduction for workers aged 60 and over has only small macroeconomic effects because the labour supply increase of older workers is partly offset by a reduction in the labour supply at core ages. This induced effect also discourages savings and generates crowding out through private investment but has a favourable impact on lifetime economic welfare. The macroeconomic impact is much larger when the income tax reduction is temporary because workers no longer reduce their hours at core ages and there is no reduction in savings. However, since only current middle-aged and older workers benefit from the tax cut, a temporary income tax cut reduces intergenerational equity.

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