Costly Revenue-Raising and the Case for Favoring Import-Competing Industries

A standard finding in the political economy of trade policy literature is that we should expect export-oriented industries to attract more assistance than import-competing industries. In reality, however, trade policy is heavily biased toward supporting import industries. This paper shows within a standard protection for sale framework, how the costliness of raising revenue via taxation makes trade subsidies less desirable and trade taxes more desirable. The model is then estimated and its predictions tested using U.S. tariff data. An empirical estimate of the costliness of revenue-raising is also obtained.

Grief, Physical Symptoms, and Decision-Making in Mothers of Newborns Who Die

The purpose of this study was to describe predictors of level of grief and physical symptoms in mothers during the year after a newborn death. This was undertaken to fmd better ways to help these mothers during this crisis. Following appropriate approvals, volunteer subjects were contacted through hospitals, the Internet, and a health department. Of the 75 who responded, 77% were White and married, 64% were Christian. 51 % had other living children, 72% had had no prior pregnancy losses, 87% had support with decision-making about newborn care, and their mean age was 30 yrs. Once subjects had agreed to take Par4 the survey and consent form were sent to them. Study outcome variables were: Total scores on the Perinatal Grief Scale, Short Version (level of grief; T oedter, Lasker, & Alhadeff. 1988) and Sickness Impact Profile 68 (level of physical symptoms; de Bruin, Buys, de Witte, & Diederiks, 1994). Predictor variables were total scores on the Personal Resources Questionnaire 85, Part U (perceived support; Brandt & Weinert, 1981); Relationship Satisfaction Questionnaire (relationship satisfaction; Olson & McCubbin, 1983); Emotion-Focused. Problem-Focused, and Mixed Coping Subscales (emotion-focused, problem-focused, and mixed coping; Lazarus & Folkman, 1988); interval since death, ethnicity, religion, socioeconomic status, gestational age, and presence of living children. Coefficient alphas for scales were all over .75. In two stepwise-hierarchical multiple regressions, perceived support and emotion- focused coping combined to predict 43% of the variance in level of grief, and level of grief alone predicted 50% of the variance in level of physical symptoms. In written comments, mothers said they valued their role in decision-making about newborn care even with death as the result. and felt supported in that process. Findings may be used to design intervention programs to help bereaved mothers following a newborn death. Specifically, programs can help increase perceived support for bereaved mothers, and teach new ways of coping. Both strategies may result in lower levels of grief and physical symptoms in this group of bereaved mothers.

The Economics of Incentive-Based Health Care Plans

Medical savings accounts (MSAs) belong to a larger class of incentive-based health care plans. Using a model that allows the consumer to invest in healthy activities, we examine the efficiency properties of incentive plans and compare them to traditional full- coverage and deductible plans, under both experience rating and community rating. The model also is extended to include utilization of preventive health care. Properly constructed incentive plans have the capacity to induce socially efficient levels of healthy activities and preventive care, raising the expected wealth of consumers without reducing insurers' profits.

The Impact of Property Condition Disclosure Laws on Housing Prices: Evidence from an Event Study using Propensity Scores

We examine the impact of seller's Property Condition Disclosure Law on the residential real estate values. A disclosure law may address the information asymmetry in housing transactions shifting of risk from buyers and brokers to the sellers and raising housing prices as a result. We combine propensity score techniques from the treatment effects literature with a traditional event study approach. We assemble a unique set of economic and institutional attributes for a quarterly panel of 291 US Metropolitan Statistical Areas (MSAs) and 50 US States spanning 21 years from 1984 to 2004 is used to exploit the MSA level variation in house prices. The study finds that the average seller may be able to fetch a higher price (about three to four percent) for the house if she furnishes a state-mandated seller.s property condition disclosure statement to the buyer. When we compare the results from parametric and semi-parametric event analyses, we find that the semi-parametric or the propensity score analysis generals moderately larger estimated effects of the law on housing prices.