Dynamic Inefficiency in an Overlapping Generation Economy with Pollution and Health Costs

Revised 2008-08.-- Published as an article in: Journal of Public Economic Theory (2008), 10(4), 563-594.

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.

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.