An Empirical Assessment of the Comparative Advantage Gains from Trade: Evidence from Japan

2005 ◽  
Vol 95 (1) ◽  
pp. 208-225 ◽  
Author(s):  
Daniel M Bernhofen ◽  
John C Brown
Keyword(s):  
Comparative Advantage ◽  
Natural Experiment ◽  
Historical Data ◽  
Real Income ◽  
Upper Bounds ◽  
Trade Flows ◽  
Gains From Trade ◽  
Empirical Assessment ◽  
Real Gdp ◽  
Opening Up

We provide an empirical assessment of the comparative advantage gains from trade argument. We use Japan’s nineteenth-century opening up to world commerce as a natural experiment to answer the following counterfactual: “By how much would real income have had to increase in Japan during its final autarky years of 1851–1853 to afford the consumption bundle the economy could have obtained if it were engaged in international trade during that period?” Using detailed historical data on trade flows, autarky prices, and Japan’s real GDP, we obtain upper bounds on the gains from trade of about 8 to 9 percent of Japan’s GDP.

Empirical Assessment and Modeling of Traffic-induced Air Pollution

2021 ◽  
pp. 036119812110237
Author(s):  
Zhongyang Lu ◽  
Andy H. F. Chow ◽  
Jacky Leung ◽  
Haydn Kwok ◽  
Sammy Cheung
Keyword(s):  
Air Pollution ◽  
Hong Kong ◽  
Road Network ◽  
Historical Data ◽  
Flow Speed ◽  
Traffic Flows ◽  
Real World Data ◽  
Empirical Assessment ◽  
Air Quality Monitoring Stations ◽  
Transport Management

Congestion and traffic-induced air pollution are associated with population growth and economic development. Compared with congestion, there are relatively few studies on modeling and assessment of traffic-induced pollution. This paper presents an empirical assessment and analysis of traffic-induced air pollution with real-world data collected from the Hong Kong Strategic Road Network. The study employed historical data of traffic flows, speeds, and emission of air pollutants collated by the Hong Kong Transport Department and Environmental Protection Department. This paper first reveals the correlation between traffic flows, speeds, and corresponding induced pollutants including nitrogen oxides (NO2, NOX) and carbon monoxide (CO). To gain further statistical insight, a regression analysis was conducted on the flow–speed–emission relationship at three air quality monitoring stations, which revealed the significance of various factors on this relationship. This study contributes to green transport management and urban sustainability.

scholarly journals Retrospectives: On the Genius Behind David Ricardo's 1817 Formulation of Comparative Advantage

2018 ◽  
Vol 32 (4) ◽  
pp. 227-240
Author(s):  
Daniel M. Bernhofen ◽  
John C. Brown
Keyword(s):  
Political Economy ◽  
Comparative Advantage ◽  
John Stuart Mill ◽  
Gains From Trade ◽  
200Th Anniversary ◽  
Analytical Results ◽  
Ricardian Model ◽  
Logical Sense

Last year marked the 200th anniversary of Ricardo’s famous “four numbers” paragraph on comparative advantage, which is one of the oldest analytical results in economics. Following the lead of James Mill (1821), these four numbers have been interpreted as unit labor coefficients. This interpretation has provided the basis for the development of the ‘Ricardian model’ from John Stuart Mill (1852) to Eaton and Kortum (2002). However, if we accept the labor unit interpretation of these numbers, Ricardo’s exposition in his 1817 Principles of Political Economy and Taxation makes little logical sense. Building on Sraffa’s (1930) interpretation of Ricardo’s numbers as labor embodied in trade, our discussion reveals the amazing simplicity and generality of Ricardo’s comparative advantage formulation and gains-from-trade logic.

scholarly journals AID AND GROWTH IN BANGLADESH: A REASSESSMENT

2018 ◽  
pp. 422-440
Author(s):  
Sharif Hossain ◽  
Rajarshi Mitra ◽  
Thasinul Abedin
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Inflation Rate ◽  
Government Expenditure ◽  
Real Income ◽  
Domestic Investment ◽  
Real Gdp ◽  
Long Run ◽  
Short Run ◽  
Per Capita

Although the amount of foreign aid received by Bangladesh as a share of GDP has declined over the years, Bangladesh remains one of the heavily aiddependent countries in Asia. The results of most empirical studies that have examined the effectiveness of foreign aid or other forms of development assistance for economic growth have varied considerably depending on the econometric methodology used and the period of study. As the debate and controversy over aid-effectiveness for economic growth continue to grow, this paper reinvestigates the short-run and long-run effects of foreign aid received on percapita real income of Bangladesh over the period 1972–2015. A vector error correction model is estimated. The results indicate lack of any significant short-run and long-run relation between foreign aid and per-capita real income. Results further indicate short-run unidirectional causalities from per-capita real GDP to domestic investment (in proportion to GDP), from government expenditure (in proportion to GDP) to inflation rate, from inflation rate to domestic investment (in proportion to GDP), and from domestic investment to foreign aid (as percentages of GDP). Short-run bidirectional causality is observed between per-capita electricity consumption and per-capita real GDP, and between per-capita real GDP and government expenditure (in proportion to GDP).

Food Stamps, Income Shocks, and Crime: Evidence from California

2018 ◽  
Vol 18 (4) ◽  
Author(s):  
Nicholas Lovett
Keyword(s):  
Event Study ◽  
Criminal Behavior ◽  
Natural Experiment ◽  
Real Income ◽  
Food Stamps ◽  
Economic Conditions ◽  
Extensive Literature ◽  
Income Shocks ◽  
Assistance Programs ◽  
Labor Earnings

Abstract An extensive literature shows that reduced labor earnings lead to an increase in criminality, while another literature suggests that diminished economic conditions via changes in public assistance programs may alter criminal behavior. This study considers electronic benefit transfer (EBT) reforms that may have altered households’ real income, black market activity, and criminality. A natural experiment that relies on plausibly exogenous variation in the timing of EBT reforms across California counties is exploited within an event study design to identify the effect of EBT adoption on arrests. A significant, though transitory, increase in criminal arrests is revealed. Following conversion to EBT delivery, the average county experiences an additional 108 arrests per month, or equivalently an increase of 5 . This increase in arrests lasts up to 6 months before fading out. The increase is most pronounced for crimes motivated by income shortfalls, such as burglary, larceny, prostitution, and robbery. In the average county, income-motivated criminal arrests rise by about 25 arrests, or 10 . Estimates are practically and statistically significant, as well as robust to changes in controls and specification. Findings suggest that income shocks can substantially change criminal behavior and that declining economic conditions can alter criminal behavior through channels other than labor earnings.

scholarly journals DAYA SAING MINYAK SAWIT DAN DAMPAK RENEWABLE ENERGY DIRECTIVE (RED) UNI EROPA TERHADAP EKSPOR INDONESIA DI PASAR UNI EROPA

2018 ◽  
Vol 5 (2) ◽  
pp. 125
Author(s):  
Gisa Rachma Khairunisa ◽  
Tanti Novianti
Keyword(s):  
Renewable Energy ◽  
Palm Oil ◽  
Comparative Advantage ◽  
Export Price ◽  
Gravity Models ◽  
Real Gdp ◽  
Oil Exports ◽  
Real Gdp Per Capita ◽  
The Impact ◽  
The Eu

<em>Palm oil is Indonesia's main export commodity. The EU is Indonesia's largest palm oil importer second after India, so it can affect the condition of Indonesia's palm oil exports. In 2009 the EU issued a Renewable Energy Directive that may have an impact on Indonesia's palm oil exports. The purpose of this study was to analyze the competitive position of Indonesian palm oil using the Revealed Comparative Advantage (RCA) and the Export Product Dynamics (EPD) as well as analyze the impact of policies Renewable Energy Directive towards the export value of Indonesian palm oil using gravity models. RCA analysis results indicate that the Indonesian palm oil has a comparative advantage (RCA&gt; 1). Analysis of Indonesian palm oil EPD average is in position "Rising Star". The results of the analysis of gravity models show a real GDP per capita in the country of destination, the population of the country of destination, the export price of palm oil, and the Renewable Energy Directive policies significantly affect the value of exports of palm oil, while Indonesia and the real exchange rate had no significant effect within the economy.</em>

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