Marriage as a Mechanism of Internalizing Externalities: A Case of Smoking

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Jane J. You
Keyword(s):  
Positive Impact ◽  
Panel Study ◽  
Legal Institution ◽  
Income Dynamics ◽  
Negative Externalities ◽  
Long Run ◽  
Married Individuals

Abstract With the view of marriage as a legal institution to internalize externalities, I examine the effect of marriage on smoking. From analyzing the data of Panel Study of Income Dynamics, I found that unmarried individuals are more likely to smoke by 4.9% point than married individuals with stronger impact on females. The long-run impact of marriage also shows that the unmarried individuals smoke more than married individuals but some of its positive impact diminishes within two years. These results on the whole imply that marriage internalizes the negative externalities of smoking and thus leads smokers to reduce smoking.

scholarly journals Long-Run Impacts of Childhood Access to the Safety Net

2016 ◽  
Vol 106 (4) ◽  
pp. 903-934 ◽  
Author(s):  
Hilary Hoynes ◽  
Diane Whitmore Schanzenbach ◽  
Douglas Almond
Keyword(s):  
Family Background ◽  
Panel Study ◽  
Safety Net ◽  
Economic Resources ◽  
Adult Health ◽  
Income Dynamics ◽  
Long Run ◽  
Self Sufficiency ◽  
Access To Food ◽  
The Impact

We examine the impact of a positive and policy-driven change in economic resources available in utero and during childhood. We focus on the introduction of the Food Stamp Program, which was rolled out across counties between 1961 and 1975. We use the Panel Study of Income Dynamics to assemble unique data linking family background and county of residence in early childhood to adult health and economic outcomes. Our findings indicate access to food stamps in childhood leads to a significant reduction in the incidence of metabolic syndrome and, for women, an increase in economic self-sufficiency. (JEL I12, I38, J24)

Can inbound medical tourism boost Malaysia’s economic growth?

2016 ◽  
Vol 18 (4) ◽  
pp. 505-513 ◽  
Author(s):  
Chor Foon Tang ◽  
Ahmad Sofwan Nathan Abdullah
Keyword(s):  
Economic Growth ◽  
Medical Tourism ◽  
Positive Impact ◽  
Decomposition Analysis ◽  
Tourism Industry ◽  
Negative Externalities ◽  
Long Run ◽  
Variance Decomposition Analysis ◽  
The Impact

Medical tourism is an extensively researched sub-sector of the tourism industry because of its acknowledged role as an important catalyst for economic growth. Nevertheless, the impact of medical tourism on economic growth remains contentious due to associated negative externalities. This paper assesses medical tourism’s role in Malaysia’s long-term economic growth using a neoclassical growth model as its framework and a set of time series econometric approaches, namely cointegration, Granger causality and variance decomposition analysis as core instruments. The results indicate that medical tourism has significant positive impact on Malaysia’s economic growth in the long run.

scholarly journals The Consequences of Incarceration for Mortality in the United States

2019 ◽  
Author(s):  
Sebastian Daza ◽  
alberto palloni ◽  
Jerrett Jones
Keyword(s):  
Panel Study ◽  
Well Being ◽  
The United States ◽  
Income Dynamics ◽  
Former Prisoners ◽  
The United Kingdom ◽  
Long Run ◽  
The Us ◽  
First Time ◽  
Health And Mortality

Previous research suggests that incarceration has negative implications for individuals’ well-being, health, and mortality. Most of these studies, though, do not follow former prisoners over extended periods of time and into older adult ages when it is more likely that cumulative consequences of incarceration will be felt. This paper contributes to this literature by employing for the first time the Panel Study of Income Dynamics (PSID) to estimate the long-run association between individual incarceration and mortality over nearly 40 years, and supplementing those analyses with the National Longitudinal Survey of Youth 1979 (NLSY79). We then use these estimates to investigate the implications of the US incarceration regime and the post-1980 incarceration boom for the US health and mortality disadvantage relative to industrialized peer countries (the United Kingdom).

Wealth and Consumption After Job Displacement

2021 ◽  
pp. 1-29
Author(s):  
Justin Barnette
Keyword(s):  
Life Cycle ◽  
Panel Study ◽  
Job Displacement ◽  
Income Dynamics ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Large Drop ◽  
Long Run ◽  
The Usa ◽  
Standard Life

Abstract Income drops permanently after an involuntary job displacement, but it has never been clear what happens to long run wealth in the USA. Upon displacement, wealth falls 14% relative to workers of the same age and similar education from the Panel Study of Income Dynamics (PSID). Their wealth is still 18% lower 12 years after the event. A standard life cycle model calibrated to US data with permanent decreases in income after displacement behaves differently than these findings. The agents in the model also experience a large drop in wealth but they recover. The biggest culprit for these differences is small and statistically insignificant changes to consumption in the PSID whereas agents in the model decrease their consumption considerably. Extending the model to include habit formation reconciles some of these differences by generating similar long run effects on wealth. This allows for the examination of wealth at death through the lens of the model.

scholarly journals Choosing a Control Group for Displaced Workers

ILR Review ◽  
2017 ◽  
Vol 71 (5) ◽  
pp. 1232-1254 ◽  
Author(s):  
Pawel Krolikowski
Keyword(s):  
Panel Study ◽  
Displaced Workers ◽  
Average Treatment Effect ◽  
Control Group ◽  
Income Dynamics ◽  
Initial Displacement ◽  
Earnings Losses ◽  
Long Run ◽  
Job Instability ◽  
The Impact

The vast majority of studies on the earnings of displaced workers use a control group of never-displaced workers to examine the effects of initial displacement. This approach attributes earnings declines associated with all future job instability to the initial displacement event, overstating the losses relative to the average treatment effect. In this article, the author’s approach isolates the impact of an average displacement without conditioning on future displacement status in the control group. In comparisons of the standard and alternative approaches using Panel Study of Income Dynamics (PSID) data, the estimated long-run earnings losses fall dramatically from 25% to as low as 5%.

Fish Exports and Economic Growth: The Pakistan’s Experience

2019 ◽  
Vol 20 (2) ◽  
pp. 279-296 ◽  
Author(s):  
Syed Tehseen Jawaid ◽  
Mohammad Haris Siddiqui ◽  
Zeeshan Atiq ◽  
Usman Azhar
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Positive Impact ◽  
Impulse Response Function ◽  
Policy Implications ◽  
Sensitivity Analyses ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

This study attempts to explore first time ever the relationship between fish exports and economic growth of Pakistan by employing annual time series data for the period 1974–2013. Autoregressive distributed lag and Johansen and Juselius cointegration results confirm the existence of a positive long-run relationship among the variables. Further, the error correction model reveals that no immediate or short-run relationship exists between fish exports and economic growth. Different sensitivity analyses indicate that initial results are robust. Rolling window analysis has been applied to identify the yearly behaviour of fish exports, and it remains negative from 1979 to 1982, 1984 to 1988, 1993 to 1999, 2004 and from 2010 to 2013, and it shows positive impact from 1989 to 1992, 2000 to 2003 and from 2005 to 2009. Furthermore, the variance decomposition method and impulse response function suggest the bidirectional causal relationship between fish exports and economic growth. The findings are beneficial for policymakers in the area of export planning. This study also provides some policy implications in the final section.

Using intentions to predict fertility

2021 ◽  
pp. 1-26
Author(s):  
Johannes Norling
Keyword(s):  
Rational Expectations ◽  
Panel Study ◽  
Income Dynamics ◽  
Number Of Children ◽  
Childless Women

Abstract On average, childless women observed by the Panel Study of Income Dynamics report that they intend to have more children than they actually have. A collection of intentions that record only whether respondents intend to have another child can more accurately predict the number of children they have. Errors in the formation of intentions are not required to explain this finding. Rather, if intentions record a survey respondent's most likely predicted number of children, then the average of these intentions does not necessarily equal average actual fertility, even if intentions are formed using rational expectations.

scholarly journals Regional trade and food security challenges: The case of SAARC countries

2020 ◽  
Vol 66 (No. 7) ◽  
pp. 335-344
Author(s):  
Muhammad Waqas Khalid ◽  
Ashar Sultan Kayani ◽  
Jamal Mohammed Alotaibi ◽  
Muhammad Muddassir ◽  
Bader Alhafi Alotaibi ◽  
...  
Keyword(s):  
Food Security ◽  
Regional Cooperation ◽  
Negative Impact ◽  
Positive Impact ◽  
Regional Trade ◽  
Policy Makers ◽  
Long Run ◽  
Security Challenges ◽  
Trading Partners ◽  
Trade Partners

Higher consumption and increased import requirements for the South Asian Association for Regional Cooperation (SAARC) region can be catered through neighboring trade partners if resources are optimally utilized. The purpose of this research is to analyze the connection between regional trade of SAARC countries and the food security challenges faced by the region. The study uses data from 1990–2018 for Pakistan, India, Sri Lanka, and Bangladesh to econometrically analyze the determinants of the volume of food trade. The results show that the gross domestic product of importing or exporting countries and foreign direct investment (FDI) have positive impact on regional trade. The bilateral exchange rate between trading partners has a negative impact on the trade volume. The results also showed the absence of a long-run relationship between volume of trade and food security using Johansen’s cointegration test. Our analysis suggests that policy makers should focus on the means for creating favorable environment in Pakistan and India to not only meet the increasing global demands for food but also increasing their competitiveness for high-quality and low-quality priced products in major exports markets.

Relationship between Budget Deficit and Economic Growth: Evidence from Ethiopia

2021 ◽  
Vol 2 (2) ◽  
pp. 10-15
Author(s):  
Desalegn Emana
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Budget Deficit ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Negative Relationship ◽  
Nominal Exchange Rate ◽  
Series Data ◽  
Long Run

This study examined the relationship between budget deficit and economic growth in Ethiopia using time series data for the period 1991 to 2019 by applying the ARDL bounds testing approach. The empirical results indicate that budget deficit and economic growth in Ethiopia have a negative relationship in the long run, and have a weak positive association in the short run. In line with this, in the long run, a one percent increase in the budget deficit causes a 1.43 percent decline in the economic growth of the country. This result is consistent with the neoclassical view which says budget deficits are bad for economic growth during stimulating periods. Moreover, in the long run, the variables trade openness and inflation have a positive impact on Ethiopian economic growth, and on the other hand, the economic growth of Ethiopia is negatively affected by the nominal exchange rate in the long run. Apart from this, in the long run, gross capital formation and lending interest rates have no significant impact on the economic growth of the country. Therefore, the study recommends the government should manage its expenditure and mobilize the resources to generate more revenue to address the negative impact of the budget deficit on economic growth.

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