Second-best tax policy in a growing economy with externalities

This paper investigates the exploitation of environmental resources in a growing economy within a second-best scal policy framework. Agents derive utility from two types of consumption goods one which relies on an environmental input and one which does not as well as from leisure and from environmental amenity values. Property rights for the environmental resource are potentially incomplete. We connect second best policy to essential components of utility by considering the elasticity of substitution among each of the four utility arguments. The results illustrate potentially important relationships between environmental amentity values and leisure. When amenity values are complementary with leisure, for instance when environmental amenities are used for recreation, taxes on extractive goods generally increase over time. On the other hand, optimal taxes on extractive goods generally decrease over time when leisure and environmental amenity values are substitutes. Unders some parameterizations, complex dynamics leading to nonmonotonic time paths for the state variables can emerge.

Terrorism and the World Economy

Published as an article in: European Economic Review, 2008, vol. 52, issue 1, pages 1-27.

Growth in an oil abundant economy: The case of Venezuela

This paper has been presented at DEGIT-X held in México 2005.-- Revised: 2008-08.

Optimal Minimum Wage in a Competitive Economy: an Alternative Modelling Approach

This paper analyzes whether a minimum wage can be an optimal redistribution policy when distorting taxes and lump-sum transfers are also available in a competitive economy. We build a static general equilibrium model with a Ramsey planner making decisions on taxes, transfers, and minimum wage levels. Workers are assumed to differ only in their productivity. We find that optimal redistribution may imply the use of a minimum wage. The key factor driving our results is the reaction of the demand for low skilled labor to the minimum wage law. Hence, an optimal minimum wage appears to be most likely when low skilled households are scarce, the complementarity between the two types of workers is large or the difference in productivity is small. The main contribution of the paper is a modelling approach that allows us to adopt analysis and solution techniques widely used in recent public finance research. Moreover, this modelling strategy is flexible enough to allow for potential extensions to include dynamics into the model.

An integrated assessment of the continued spread and potential impacts of the colonial ascidian, Didemnum sp. A, in U.S. waters

Didemnum sp. A is a colonial ascidian or “sea squirt” of unknown geographic origin. Colonies of Didemnum sp. A were first documented in U.S. waters in 1993 at Damariscotta River, Maine and San Francisco Bay, California. An alarming number of colonies have since been found at several locations in New England and along the West Coast of the contiguous continental United States. Originally believed to be restricted to artificial structures in nearshore habitats, such as ports and marinas, colonies of Didemnum sp. A have also been discovered on a gravel-pavement habitat on Georges Bank at depths of 40-65m. The wide distribution of Didemnum sp. A, the presence of colonies on an important offshore fishing ground, and the negative economic impacts that other species of noninidigenous ascidians have had on aquaculture operations have raised concerns about the potential impacts of Didemnum sp. A. We reviewed the available information on the biology and ecology of Didemnum sp. A and potentially closely related species to examine the environmental and socioeconomic factors that may have influenced the introduction, establishment and spread of Didemnum sp. A in U.S. waters, the potential impacts of this colonial ascidian on other organisms, aquaculture, and marine fisheries, and the possibility that it will spread to other U.S. waters. In addition, we present and discuss potential management objectives for minimizing the impacts and spread of Didemnum sp. A. Concern over the potential for Didemnum sp. A to become invasive stems from ecological traits that it shares with other invasive species, including the ability to overgrow benthic organisms, high reproductive and population growth rates, ability to spread by colony fragmentation, tolerance to a wide range of environmental conditions, apparent scarcity of predators, and the ability to survive in human dominated habitats. At relatively small spatial scales, species of Didemnum and other nonindigenous ascidians have been shown to alter the abundance and composition of benthic assemblages. In addition, the Canadian aquaculture industry has reported that heavy infestations of nonindigenous ascidians result in increased handling and processing costs. Offshore fisheries may also suffer where high densities of Didemnum sp. A may alter the access of commercially important fish species to critical spawning grounds, prey items, and refugia. Because colonial ascidian larvae remain viable for only 12–24hrs, the introduction and spread of Didemnum sp. A across large distances is thought to be predominantly human mediated; hull fouling, aquaculture, and ballast water. Recent studies suggest that colony growth rates decline when temperatures exceed 21 ºC for 7 consecutive days. Similarly, water temperatures above 8 to 10 ºC are necessary for colony growth; however, colonies can survive extended periods of time below this temperature threshold as an unidentified overwintering form. A qualitative analysis of monthly mean nearshore water temperatures suggest that new colonies of Didemnum will continue to be found in the Northeast U.S., California Current, and Gulf of Alaska LMEs. In contrast, water temperatures become less favorable for colony establishment in subarctic, subtropical, and tropical areas to the north and south of Didemnum’s current distribution in cool temperate habitats. We recommend that the Aquatic Nuisance Species Task Force serve as the central management authority to coordinate State and Federal management activities. Five objectives for a Didemnum sp. A management and control program focusing on preventing the spread of Didemnum sp. A to new areas and limiting the impacts of existing populations are discussed. Given the difficulty of eradicating large populations of Didemnum sp. A, developing strategies for limiting the access of Didemnum sp. A to transport vectors and locating newly established colonies are emphasized. (PDF contains 70 pages)

The position of a social economy in the Czech Republic at present

The Social Economy is a new phenomenon in the Czech Republic. It means the economy with its social effects that is being supported within public politics. Some analyses have been done at J.E:purkynI University in Ústí nad Labem during the last years. The topics of this research were the transformation of public administration, non-profit sector(respectively the civil mix sector), co-operatives, and social enterprises, and it is still ongoing.

Income Taxation and Growth in an OLG Economy: Does Aggregate Uncertainty Play any Role?

We analyze the effects of capital income taxation on long-run growth in a stochastic, two-period overlapping generations economy. Endogenous growth is driven by a positive externality of physical capital in the production sector that makes firms exhibit an aggregate technology in equilibrium. We distinguish between capital income and labor income, and between attitudes towards risk and intertemporal substitution of consumption. We show necessary and sufficient conditions such that i) increments in the capital income taxation lead to higher equilibrium growth rates, and ii) the effect of changes in the capital income tax rate on the equilibrium growth may be of opposite signs in stochastic and in deterministic economies. Such a sign reversal is shown to be more likely depending on i) how the intertemporal elasticity of substitution compares to one, and ii) the size of second- period labor supply. Numerical simulations show that for reasonable values of the intertemporal elasticity of substitution, a sign reversal shows up only for implausibly high values of the second- period’s labor supply. The conclusion is that deterministic OLG economies are a good approximation of the effect of taxes on the equilibrium growth rate as in Smith (1996).

Re-emphasizing the importance of Lake Chad fisheries in Nigerian economy: Borno State experience

Nigeria with an estimated population of about 120 million people requires about 2.3 million metric tonnes of fish and fisheries product for good health at the recommended 19 kg/caput/year by FAO. Lake Chad fisheries resource of Borno State is a blessing in disguise to the Nigerian economy. It has potential to produce over 300,000 metric tonnes of fish protein annually, representing about 12.2% of the total fish demand of Nigerians. In spite of this laudable potential Lake Chad fisheries resources of Borno State declined in the past two decades due, largely, to lack of/or inadequate attention by the government, private and commercial organization, lack of social economics and infra-structural facilities for rational exploitations and management of its resources. This paper re-emphasizes the importance of Lake Chad Fisheries of Borno State in the Nigerian economy. The fisheries resources, the environment, the exploitation, the potential marketing, the role of law enforcement and foreign agencies, the constraints and potentials are discussed. Nigeria can derive a substantial proportion of its fish demand from Lake Chad fisheries of Borno State alone just with the adoption of some proffered strategies including combined efforts of the private and public sectors in the rational management of the fisheries resource of Lake Chad

The effects of brood stock size on the economy of catfish (Clarias anguillaris) fry production using the hormone induced natural breeding technique

89 ripe female brooders of the catfish, Clarias anguillaris (Body wt. Range 150g-1, 200g) were induced to spawn by hormone (Ovaprim) induced natural spawning technique over a period of 10 weeks. Matching ripe males were used for pairing the females at the ratio of two males to a female. Six ranges of brood stock body weights were considered as follows; <200g; 200g-399g; 400g-599g; 600-799g; 800g-999g; > 1000g and the number of fry produced by each female brooder was scored/recorded against the corresponding body weight range. The number of fry per unit quantity of hormone and the cost of production a fry based on the current price of Ovaprim (hormon) were determined so as to ascertain most economic size range. The best and most economic size range was between 400g-599g body weight with about 20,000 fry per ml of hormone and N0.028 per fry, while the females above 1000g gave the poorest results of 9,519 fry per ml of hormone and N0.059 per fry. For optimum production of Clarias anguillaris fry and maximum return on investment female brooders of body weights ranging between 400g-599g are recommended for hormone induced natural breeding exercises

Hatchery construction and its feasibility in the Nigerian economy

Aquaculture drive in the Niger Delta has necessitated the springing up of various forms of hatcheries in Nigeria in the area. The hatchery level is high as most fish farmers now want to produce their own fingerlings for the stocking of their production ponds for culture to market (table) size. The paper shows that there is a lot of market in the Niger-Delta for fresh fish. Majority of the numerous fish farmers are not well empowered to breed and produce fish seeds especially species most loved and eaten. The rising cost of materials in the Nigerian economy has become a bottleneck in the construction of more fish hatcheries for fingerling production. However, the assistance of multinationals has become very necessary to enhance its feasibility to encourage better involvement in the fish hatchery works. One remarkable area where assistance is being felt by the communities in the Niger-Delta is in fish farming and more so in the supply of fish fingerling to top fish farmers by The Shell Petroleum Development Company of Nigeria Limited (SPDC), a multinational oil company in the area. Few fish farmers have benefited from this. If more hatcheries are available to service and provide the needed fingerlings to stock the available water bodies such as, home backyard ponds, the 0.74 million hectares of brackish water, 1.01 million hectares of perennial swamps, and other marginal land available for aquaculture and properly managed, it will yield between 2.5 and 10 metric tones of fish depending on the species stocked and bred

The effects of brood stock size on the economy of catfish (Clarias anguillaris) fry production using the hormone induced natural breeding technique

89 ripe female brooders of the catfish, Clarias anguillaris (Body wt. Range 150g-1, 200g) were induced to spawn by hormone (Ovaprim) induced natural spawning technique over a period of 10 weeks. Matching ripe males were used for pairing the females at the ratio of two males to a female. Six ranges of brood stock body weights were considered as follows; <200g; 200g-399g; 400g-599g; 600-799g; 800g-999g; > 1000g and the number of fry produced by each female brooder was scored/recorded against the corresponding body weight range. The number of fry per unit quantity of hormone and the cost of production a fry based on the current price of Ovaprim (hormon) were determined so as to ascertain most economic size range. The best and most economic size range was between 400g-599g body weight with about 20,000 fry per ml of hormone and N0.028 per fry, while the females above 1000g gave the poorest results of 9,519 fry per ml of hormone and N0.059 per fry. For optimum production of Clarias anguillaris fry and maximum return on investment female brooders of body weights ranging between 400g-599g are recommended for hormone induced natural breeding exercises

Lessons from History for Transitions to a Low Carbon Economy

4 p.

The basque ecological debt: global socioecological impacts of a small open economy

4 p.

Extractive institutions in colonial Africa

A common explanation for African current underdevelopment is the extractive character of institutions established during the colonial period. Yet, since colonial extraction is hard to quantify and its exact mechanisms are not well understood, we still do not know precisely how colonial institutions affect economic growth today. In this project, I study this issue by focusing on the peculiar structure of trade and labor policies employed by the French colonizers.

First, I analyze how trade monopsonies and coercive labor institutions reduced African gains from trade during the colonial period. By using new data on prices to agricultural producers and labor institutions in French Africa, I show that (1) the monopsonistic character of colonial trade implied a reduction in prices to producers far below world market prices; (2) coercive labor institutions allowed the colonizers to reduce prices even further; (3) as a consequence, colonial extraction cut African gains from trade by over 60%.

Given the importance of labor institutions, I then focus on their origin by analyzing the colonial governments' incentives to choose between coerced and free labor. I argue that the choice of institutions was affected more by the properties of exported commodities, such as prices and economies of scale, than by the characteristics of colonies, such indigenous population density and ease of settlement for the colonizers.

Finally, I study the long-term effects of colonial trade monopsonies and coercive labor institutions. By combining archival data on prices in the French colonies with maps of crop suitability, I show that the extent to which prices to agricultural producers were reduced with respect to world market prices is strongly negatively correlated with current regional development, as proxied by luminosity data from satellite images. The evidence suggests that colonial extraction affected subsequent growth by reducing development in rural areas in favor of a urban elite. The differential impact in rural and urban areas can be the reason why trade monopsonies and extractive institutions persisted long after independence.