Fall 2018 Magazine Of Economical Perspectives Available On-Line
I was hired dorsum inwards 1986 to hold upwards the Managing Editor for a novel academic economic science journal, at the fourth dimension unnamed, but which shortly launched as the Journal of Economic Perspectives. The JEP is published past times the American Economic Association, which dorsum inwards 2011 decided--to my delight--that it would hold upwards freely available on-line, from the electrical current number dorsum to the start issue. Here, I'll start alongside Table of Contents for the just-released Fall 2018 issue, which inwards the Taylor occupation solid is known as number #126. Below that are abstracts too direct links for all of the papers. I may weblog to a greater extent than specifically virtually around of the papers inwards the side past times side calendar week or two, as well.
________________________________
Symposium on Climate Change
"An Economist's Guide to Climate Change Science," by Solomon Hsiang too Robert E. Kopp
This article provides a brief introduction to the physical scientific discipline of climate change, aimed towards economists. We start out past times describing the physics that controls global climate, how scientists mensurate too model the climate system, too the magnitude of human-caused emissions of carbon dioxide. We so summarize many of the climatic changes of involvement to economists that receive got been documented too that are projected inwards the future. We conclude past times highlighting around key areas inwards which economists are inwards a unique seat to assist climate scientific discipline advance. An of import message from this in conclusion section, which nosotros believe is deeply underappreciated amidst economists, is that all climate modify forecasts rely heavily too direct on economical forecasts for the world. On timescales of a half-century or longer, the largest source of doubtfulness inwards climate scientific discipline is non physics, but economics.
Full-Text Access | Supplementary Materials
"Quantifying Economic Damages from Climate Change," past times Maximilian Auffhammer
Climate scientists receive got spent billions of dollars too eons of supercomputer fourth dimension studying how increased concentrations of greenhouse gases too changes inwards the reflectivity of the earth's surface touching on dimensions of the climate organization relevant to human society: surface temperature, precipitation, humidity, too ocean levels. Recent incarnations of physical climate models receive got larn sophisticated plenty to hold upwards able to imitate intensities too frequencies of around extreme events, similar tropical storms, nether unlike warming scenarios. In a stark juxtaposition, the efforts involved inwards too the populace resources targeted at agreement how these physical changes interpret into economical impacts are disproportionately smaller, alongside most of the major models beingness developed too maintained alongside footling to no populace funding support. The finish of this newspaper is start to shed low-cal on how (mostly) economists receive got gone virtually calculating the "social toll of carbon" for regulatory purposes too to provide an overview of the past times too currently used estimates. In the minute part, I volition focus on where empirical economists may receive got the highest value added inwards this enterprise: specifically, the calibration too estimation of economical harm functions, which map weather condition patterns transformed past times climate modify into economical benefits too damages. H5N1 broad diversity of econometric methods receive got lately been used to parameterize the dose (climate) answer (economic outcome) functions. The newspaper seeks to provide an accessible too comprehensive overview of how economists recollect virtually parameterizing harm functions too quantifying the economical damages of climate change.
Full-Text Access | Supplementary Materials
"The Cost of Reducing Greenhouse Gas Emissions," past times Kenneth Gillingham too James H. Stock
Most countries, including the United States, receive got an array of greenhouse gas mitigation policies, which provide subsidies or restrictions typically aimed at specific technologies or sectors. Such climate policies hit from automobile fuel economic scheme standards, to gasoline taxes, to mandating that a for certain amount of electricity inwards a province comes from renewables, to subsidizing solar too air current electrical generation, to mandates requiring the blending of biofuels into the surface transportation fuel supply, to supply-side restrictions on fossil fuel extraction. This newspaper reviews the costs of diverse technologies too actions aimed at reducing greenhouse gas emissions. Our aim is twofold. First, nosotros seek to provide an up-to-date summary of costs of actions that tin lav hold upwards taken right away using currently available technology. These costs focus on expenditures too emissions reductions over the life of a projection compared to around business-as-usual benchmark—for example, replacing coal-fired electricity generation alongside wind, or weatherizing a home. We refer to these costs as static because they are costs over the life of a specific projection undertaken now, too they ignore spillovers. Our minute aim is to distinguish betwixt dynamic too static costs too to fence that around actions taken today alongside seemingly high static costs tin lav receive got depression dynamic costs, too vice versa. We brand this declaration at a full general grade too through ii instance studies, of solar panels too of electrical vehicles, technologies whose costs receive got fallen sharply. Under the correct circumstances, dynamic effects volition offering a justification for policies that receive got high costs according to a myopic calculation.
Full-Text Access | Supplementary Materials
Symposium on the Tax Cuts too Jobs Act
"Is This Tax Reform, or Just Confusion?" past times Joel Slemrod
Based on the sense of recent decades, the US evidently musters the political volition to modify its revenue enhancement organization comprehensively virtually every thirty years, so it seems specially of import to larn it correct when the direct chances arises. Based on the strong populace statements of economists opposing too supporting the Tax Cuts too Jobs Act of 2017, a causal observer mightiness wonder whether this constabulary was revenue enhancement reform or mere confusion. In this paper, I address that interrogation and, to a greater extent than importantly, offering an assessment of the Tax Cuts too Jobs Act. The constabulary is clearly non "tax reform" as economists commonly utilisation that term: that is, it does non seek to broaden the revenue enhancement base of operations too trim down marginal rates inwards a roughly revenue-neutral manner. However, the constabulary is non only a muddle. It seeks to address around widely acknowledged issues alongside corporate taxation, too takes around steps toward broadening the revenue enhancement base, inwards portion past times reducing the incentive to itemize deductions.
Full-Text Access | Supplementary Materials
"Measuring the Effects of Corporate Tax Cuts," past times Alan J. Auerbach
On Dec 22, 2017, President Donald Trump signed the Tax Cuts too Jobs Act (TCJA), the most sweeping revision of US revenue enhancement constabulary since the Tax Reform Act of 1986. The constabulary introduced many pregnant changes. However, mayhap none was as of import as the changes inwards the handling of traditional "C" corporations—those corporations dependent area to a dissever corporate income tax. Beginning inwards 2018, the federal corporate revenue enhancement charge per unit of measurement brutal from 35 percent to 21 percent, around investment qualified for immediate deduction as an expense, too multinational corporations faced a substantially modified handling of their activities. This newspaper seeks to evaluate the impact of the Tax Cuts too Jobs Act to sympathize its effects on resources allotment too distribution. It compares US corporate revenue enhancement rates to other countries earlier the 2017 revenue enhancement law, too describes ways inwards which the US corporate sector has evolved that are specially relevant to revenue enhancement policy. The give-and-take so turns the principal changes of the Tax Cuts too Jobs Act of 2017 for the corporate income tax. H5N1 hit of estimates suggests that the constabulary is probable to contribute to increased US upper-case alphabetic lineament investment and, through that, an increment inwards US wages. The magnitude of these increases is extremely hard to predict. Indeed, the populace debate virtually the benefits of the novel corporate revenue enhancement provisions enacted (and the alternatives non adopted) has highlighted the limitations of criterion approaches inwards distributional analysis to assigning corporate revenue enhancement burdens.
Full-Text Access | Supplementary Materials
Symposium on Unconventional Monetary Policy
"Outside the Box: Unconventional Monetary Policy inwards the Great Recession too Beyond," past times Kenneth N. Kuttner
In Nov 2008, the Federal Reserve faced a deteriorating economic scheme too a fiscal crisis. The federal funds charge per unit of measurement had already been reduced to virtually zero. Thus, the Federal Reserve turned to unconventional monetary policies. Through "quantitative easing," the Fed announced plans to purchase mortgage-backed securities too debt issued past times government-sponsored enterprises. Subsequent purchases would eventually Pb to a five-fold expansion inwards the Fed's residuum sheet, from $900 billion to $4.5 trillion, too locomote out the Fed belongings over twenty percent of all mortgage-backed securities too marketable Treasury debt. In addition, Fed policy statements inwards Dec 2008 began to include explicit references to the probable path of the federal funds involvement rate, a policy that came to hold upwards known as "forward guidance." The Fed ceased its direct property purchases inwards slow 2014. Starting inwards Oct 2017, it has allowed the residuum canvass to shrink gradually as existing assets mature. From Dec 2015 through June 2018, the Fed has raised the federal funds involvement charge per unit of measurement vii times. Thus, the fourth dimension is ripe to stride dorsum too inquire whether the Fed's unconventional policies had the intended expansionary effects—and past times extension, whether the Fed should utilisation them inwards the future.
Full-Text Access | Supplementary Materials
"Unconventional Monetary Policies inwards the Euro Area, Japan, too the United Kingdom," Giovanni Dell'Ariccia, Pau Rabanal too Damiano Sandri
The global fiscal crisis hitting hard inwards the euro area, the United Kingdom, too Japan. Real gross domestic product from peak to trough contracted past times virtually six percent inwards the euro surface area too the UK too past times nine percent inwards Japan. In all 3 cases, fundamental banks cutting involvement rates aggressively too then, as policy rates approached zero, deployed a diversity of untested too unconventional monetary policies. In doing so, they hoped to restore the functioning of fiscal markets, too also to provide farther monetary policy accommodation i time the policy charge per unit of measurement reached the null lower bound. In all 3 jurisdictions, the strategy entailed generous liquidity back upwards for banks too other fiscal intermediaries too large-scale purchases of populace (and inwards around cases private) assets. As a result, fundamental banks' residuum sheets expanded to unprecedented levels. This newspaper examines the sense alongside unconventional monetary policies inwards the euro zone, the United Kingdom, too Japan. The newspaper starts alongside a give-and-take of how quantitative easing, forrad guidance, too negative involvement charge per unit of measurement policies piece of work inwards theory, too around of their potential side effects. It so reviews the implementation of unconventional monetary policy past times the European Central Bank, the Bank of England, too the Bank of Japan, including a narrative of how fundamental banks responded to the crisis too the bear witness on the effects of unconventional monetary policy actions.
Full-Text Access | Supplementary Materials
Symposium on Development too State Capacity
"Ending Global Poverty: Why Money Isn't Enough," Lucy Page too Rohini Pande
Between 1981 too 2013, the portion of the global population living inwards extreme poverty brutal past times 34 percent points. This newspaper argues that such rapid reductions volition larn increasingly hard to accomplish for ii reasons. First, the bulk of the miserable right away alive inwards middle-income countries where the benefits of growth receive got oftentimes been distributed selectively too unequally. Second, a reservoir of extreme poverty remains inwards low-income countries where growth is erratic too assist oftentimes fails to hand the poor. If the international community is to most effectively leverage available resources to halt extreme poverty, it must ensure that its investments inwards institutions too physical infrastructure genuinely provide the miserable the capabilities they involve to arts and crafts an effective pathway out of poverty. We term the human too social systems that are required to shape this pathway "invisible infrastructure" too fence that an effective domestic province is fundamental to edifice this. By corollary, ending extreme poverty volition require both expanding province capacity too giving the miserable ability to need reforms they involve past times solving means problems betwixt citizens, politicians, too bureaucrats.
Full-Text Access | Supplementary Materials
"Universal Basic Incomes versus Targeted Transfers: Anti-Poverty Programs inwards Developing Countries," past times Rema Hanna too Benjamin A. Olken
Of the 17 Sustainable Development Goals articulated past times the United Nations, number i is the elimination of extreme poverty past times 2030. While hereafter economical growth should proceed to trim down poverty, it volition non solve the occupation past times itself; thus, at that spot is a potentially of import role for national-level transfer programs that assist miserable families inwards developing countries. Such programs are oftentimes run past times developing province governments. Many countries receive got implemented transfer programs that seek to target beneficiaries: that is, to seat who is miserable too so to throttle transfers to those individuals. Some people receive got begun to advocate for "universal basic income" programs, which dispense alongside trying to seat the miserable too instead provide transfers to everyone. We start out past times considering the universal basic income as portion of the solution to an optimal income-taxation problem, focusing on the instance of developing countries, where at that spot is express income information too inclusion inwards the formal revenue enhancement organization is low. We examine how the targeting of transfer programs is conducted inwards these settings, too provide empirical bear witness on the tradeoffs involved betwixt universal basic income too targeted transfer schemes using information from Republic of Indonesia too Peru—two countries that run nationwide transfer programs that are targeted to the poor. We conclude past times linking our findings dorsum to the broader policy debate on what tools should hold upwards preferred for redistribution, as good as the practical challenges of administering them inwards developing countries.
Full-Text Access | Supplementary Materials
Features
"Retrospectives: On the Genius Behind David Ricardo's 1817 Formulation of Comparative Advantage," past times Daniel M. Bernhofen too John C. Brown
Last twelvemonth marked the 200th anniversary of Ricardo's famous "four numbers" paragraph on comparative advantage, which is i of the oldest analytical results inwards economics. Following the Pb of James Mill (1821), these 4 numbers receive got been interpreted as unit of measurement labor coefficients. This interpretation has provided the ground for the evolution of the 'Ricardian model' from John Stuart Mill (1852) to Eaton too Kortum (2002). However, if nosotros convey the labor unit of measurement interpretation of these numbers, Ricardo's exposition inwards his 1817 Principles of Political Economy too Taxation makes footling logical sense. Building on Sraffa's (1930) interpretation of Ricardo's numbers as labor embodied inwards trade, our give-and-take reveals the amazing simplicity too generality of Ricardo's comparative reward formulation too gains-from-trade logic.
Full-Text Access | Supplementary Materials
"Recommendations for Further Reading," past times Timothy Taylor
Full-Text Access | Supplementary Materials
Symposium on Climate Change
"An Economist's Guide to Climate Change Science," by Solomon Hsiang too Robert E. Kopp
This article provides a brief introduction to the physical scientific discipline of climate change, aimed towards economists. We start out past times describing the physics that controls global climate, how scientists mensurate too model the climate system, too the magnitude of human-caused emissions of carbon dioxide. We so summarize many of the climatic changes of involvement to economists that receive got been documented too that are projected inwards the future. We conclude past times highlighting around key areas inwards which economists are inwards a unique seat to assist climate scientific discipline advance. An of import message from this in conclusion section, which nosotros believe is deeply underappreciated amidst economists, is that all climate modify forecasts rely heavily too direct on economical forecasts for the world. On timescales of a half-century or longer, the largest source of doubtfulness inwards climate scientific discipline is non physics, but economics.
Full-Text Access | Supplementary Materials
"Quantifying Economic Damages from Climate Change," past times Maximilian Auffhammer
Climate scientists receive got spent billions of dollars too eons of supercomputer fourth dimension studying how increased concentrations of greenhouse gases too changes inwards the reflectivity of the earth's surface touching on dimensions of the climate organization relevant to human society: surface temperature, precipitation, humidity, too ocean levels. Recent incarnations of physical climate models receive got larn sophisticated plenty to hold upwards able to imitate intensities too frequencies of around extreme events, similar tropical storms, nether unlike warming scenarios. In a stark juxtaposition, the efforts involved inwards too the populace resources targeted at agreement how these physical changes interpret into economical impacts are disproportionately smaller, alongside most of the major models beingness developed too maintained alongside footling to no populace funding support. The finish of this newspaper is start to shed low-cal on how (mostly) economists receive got gone virtually calculating the "social toll of carbon" for regulatory purposes too to provide an overview of the past times too currently used estimates. In the minute part, I volition focus on where empirical economists may receive got the highest value added inwards this enterprise: specifically, the calibration too estimation of economical harm functions, which map weather condition patterns transformed past times climate modify into economical benefits too damages. H5N1 broad diversity of econometric methods receive got lately been used to parameterize the dose (climate) answer (economic outcome) functions. The newspaper seeks to provide an accessible too comprehensive overview of how economists recollect virtually parameterizing harm functions too quantifying the economical damages of climate change.
Full-Text Access | Supplementary Materials
"The Cost of Reducing Greenhouse Gas Emissions," past times Kenneth Gillingham too James H. Stock
Most countries, including the United States, receive got an array of greenhouse gas mitigation policies, which provide subsidies or restrictions typically aimed at specific technologies or sectors. Such climate policies hit from automobile fuel economic scheme standards, to gasoline taxes, to mandating that a for certain amount of electricity inwards a province comes from renewables, to subsidizing solar too air current electrical generation, to mandates requiring the blending of biofuels into the surface transportation fuel supply, to supply-side restrictions on fossil fuel extraction. This newspaper reviews the costs of diverse technologies too actions aimed at reducing greenhouse gas emissions. Our aim is twofold. First, nosotros seek to provide an up-to-date summary of costs of actions that tin lav hold upwards taken right away using currently available technology. These costs focus on expenditures too emissions reductions over the life of a projection compared to around business-as-usual benchmark—for example, replacing coal-fired electricity generation alongside wind, or weatherizing a home. We refer to these costs as static because they are costs over the life of a specific projection undertaken now, too they ignore spillovers. Our minute aim is to distinguish betwixt dynamic too static costs too to fence that around actions taken today alongside seemingly high static costs tin lav receive got depression dynamic costs, too vice versa. We brand this declaration at a full general grade too through ii instance studies, of solar panels too of electrical vehicles, technologies whose costs receive got fallen sharply. Under the correct circumstances, dynamic effects volition offering a justification for policies that receive got high costs according to a myopic calculation.
Full-Text Access | Supplementary Materials
Symposium on the Tax Cuts too Jobs Act
"Is This Tax Reform, or Just Confusion?" past times Joel Slemrod
Based on the sense of recent decades, the US evidently musters the political volition to modify its revenue enhancement organization comprehensively virtually every thirty years, so it seems specially of import to larn it correct when the direct chances arises. Based on the strong populace statements of economists opposing too supporting the Tax Cuts too Jobs Act of 2017, a causal observer mightiness wonder whether this constabulary was revenue enhancement reform or mere confusion. In this paper, I address that interrogation and, to a greater extent than importantly, offering an assessment of the Tax Cuts too Jobs Act. The constabulary is clearly non "tax reform" as economists commonly utilisation that term: that is, it does non seek to broaden the revenue enhancement base of operations too trim down marginal rates inwards a roughly revenue-neutral manner. However, the constabulary is non only a muddle. It seeks to address around widely acknowledged issues alongside corporate taxation, too takes around steps toward broadening the revenue enhancement base, inwards portion past times reducing the incentive to itemize deductions.
Full-Text Access | Supplementary Materials
"Measuring the Effects of Corporate Tax Cuts," past times Alan J. Auerbach
On Dec 22, 2017, President Donald Trump signed the Tax Cuts too Jobs Act (TCJA), the most sweeping revision of US revenue enhancement constabulary since the Tax Reform Act of 1986. The constabulary introduced many pregnant changes. However, mayhap none was as of import as the changes inwards the handling of traditional "C" corporations—those corporations dependent area to a dissever corporate income tax. Beginning inwards 2018, the federal corporate revenue enhancement charge per unit of measurement brutal from 35 percent to 21 percent, around investment qualified for immediate deduction as an expense, too multinational corporations faced a substantially modified handling of their activities. This newspaper seeks to evaluate the impact of the Tax Cuts too Jobs Act to sympathize its effects on resources allotment too distribution. It compares US corporate revenue enhancement rates to other countries earlier the 2017 revenue enhancement law, too describes ways inwards which the US corporate sector has evolved that are specially relevant to revenue enhancement policy. The give-and-take so turns the principal changes of the Tax Cuts too Jobs Act of 2017 for the corporate income tax. H5N1 hit of estimates suggests that the constabulary is probable to contribute to increased US upper-case alphabetic lineament investment and, through that, an increment inwards US wages. The magnitude of these increases is extremely hard to predict. Indeed, the populace debate virtually the benefits of the novel corporate revenue enhancement provisions enacted (and the alternatives non adopted) has highlighted the limitations of criterion approaches inwards distributional analysis to assigning corporate revenue enhancement burdens.
Full-Text Access | Supplementary Materials
Symposium on Unconventional Monetary Policy
"Outside the Box: Unconventional Monetary Policy inwards the Great Recession too Beyond," past times Kenneth N. Kuttner
In Nov 2008, the Federal Reserve faced a deteriorating economic scheme too a fiscal crisis. The federal funds charge per unit of measurement had already been reduced to virtually zero. Thus, the Federal Reserve turned to unconventional monetary policies. Through "quantitative easing," the Fed announced plans to purchase mortgage-backed securities too debt issued past times government-sponsored enterprises. Subsequent purchases would eventually Pb to a five-fold expansion inwards the Fed's residuum sheet, from $900 billion to $4.5 trillion, too locomote out the Fed belongings over twenty percent of all mortgage-backed securities too marketable Treasury debt. In addition, Fed policy statements inwards Dec 2008 began to include explicit references to the probable path of the federal funds involvement rate, a policy that came to hold upwards known as "forward guidance." The Fed ceased its direct property purchases inwards slow 2014. Starting inwards Oct 2017, it has allowed the residuum canvass to shrink gradually as existing assets mature. From Dec 2015 through June 2018, the Fed has raised the federal funds involvement charge per unit of measurement vii times. Thus, the fourth dimension is ripe to stride dorsum too inquire whether the Fed's unconventional policies had the intended expansionary effects—and past times extension, whether the Fed should utilisation them inwards the future.
Full-Text Access | Supplementary Materials
"Unconventional Monetary Policies inwards the Euro Area, Japan, too the United Kingdom," Giovanni Dell'Ariccia, Pau Rabanal too Damiano Sandri
The global fiscal crisis hitting hard inwards the euro area, the United Kingdom, too Japan. Real gross domestic product from peak to trough contracted past times virtually six percent inwards the euro surface area too the UK too past times nine percent inwards Japan. In all 3 cases, fundamental banks cutting involvement rates aggressively too then, as policy rates approached zero, deployed a diversity of untested too unconventional monetary policies. In doing so, they hoped to restore the functioning of fiscal markets, too also to provide farther monetary policy accommodation i time the policy charge per unit of measurement reached the null lower bound. In all 3 jurisdictions, the strategy entailed generous liquidity back upwards for banks too other fiscal intermediaries too large-scale purchases of populace (and inwards around cases private) assets. As a result, fundamental banks' residuum sheets expanded to unprecedented levels. This newspaper examines the sense alongside unconventional monetary policies inwards the euro zone, the United Kingdom, too Japan. The newspaper starts alongside a give-and-take of how quantitative easing, forrad guidance, too negative involvement charge per unit of measurement policies piece of work inwards theory, too around of their potential side effects. It so reviews the implementation of unconventional monetary policy past times the European Central Bank, the Bank of England, too the Bank of Japan, including a narrative of how fundamental banks responded to the crisis too the bear witness on the effects of unconventional monetary policy actions.
Full-Text Access | Supplementary Materials
Symposium on Development too State Capacity
"Ending Global Poverty: Why Money Isn't Enough," Lucy Page too Rohini Pande
Between 1981 too 2013, the portion of the global population living inwards extreme poverty brutal past times 34 percent points. This newspaper argues that such rapid reductions volition larn increasingly hard to accomplish for ii reasons. First, the bulk of the miserable right away alive inwards middle-income countries where the benefits of growth receive got oftentimes been distributed selectively too unequally. Second, a reservoir of extreme poverty remains inwards low-income countries where growth is erratic too assist oftentimes fails to hand the poor. If the international community is to most effectively leverage available resources to halt extreme poverty, it must ensure that its investments inwards institutions too physical infrastructure genuinely provide the miserable the capabilities they involve to arts and crafts an effective pathway out of poverty. We term the human too social systems that are required to shape this pathway "invisible infrastructure" too fence that an effective domestic province is fundamental to edifice this. By corollary, ending extreme poverty volition require both expanding province capacity too giving the miserable ability to need reforms they involve past times solving means problems betwixt citizens, politicians, too bureaucrats.
Full-Text Access | Supplementary Materials
"Universal Basic Incomes versus Targeted Transfers: Anti-Poverty Programs inwards Developing Countries," past times Rema Hanna too Benjamin A. Olken
Of the 17 Sustainable Development Goals articulated past times the United Nations, number i is the elimination of extreme poverty past times 2030. While hereafter economical growth should proceed to trim down poverty, it volition non solve the occupation past times itself; thus, at that spot is a potentially of import role for national-level transfer programs that assist miserable families inwards developing countries. Such programs are oftentimes run past times developing province governments. Many countries receive got implemented transfer programs that seek to target beneficiaries: that is, to seat who is miserable too so to throttle transfers to those individuals. Some people receive got begun to advocate for "universal basic income" programs, which dispense alongside trying to seat the miserable too instead provide transfers to everyone. We start out past times considering the universal basic income as portion of the solution to an optimal income-taxation problem, focusing on the instance of developing countries, where at that spot is express income information too inclusion inwards the formal revenue enhancement organization is low. We examine how the targeting of transfer programs is conducted inwards these settings, too provide empirical bear witness on the tradeoffs involved betwixt universal basic income too targeted transfer schemes using information from Republic of Indonesia too Peru—two countries that run nationwide transfer programs that are targeted to the poor. We conclude past times linking our findings dorsum to the broader policy debate on what tools should hold upwards preferred for redistribution, as good as the practical challenges of administering them inwards developing countries.
Full-Text Access | Supplementary Materials
Features
"Retrospectives: On the Genius Behind David Ricardo's 1817 Formulation of Comparative Advantage," past times Daniel M. Bernhofen too John C. Brown
Last twelvemonth marked the 200th anniversary of Ricardo's famous "four numbers" paragraph on comparative advantage, which is i of the oldest analytical results inwards economics. Following the Pb of James Mill (1821), these 4 numbers receive got been interpreted as unit of measurement labor coefficients. This interpretation has provided the ground for the evolution of the 'Ricardian model' from John Stuart Mill (1852) to Eaton too Kortum (2002). However, if nosotros convey the labor unit of measurement interpretation of these numbers, Ricardo's exposition inwards his 1817 Principles of Political Economy too Taxation makes footling logical sense. Building on Sraffa's (1930) interpretation of Ricardo's numbers as labor embodied inwards trade, our give-and-take reveals the amazing simplicity too generality of Ricardo's comparative reward formulation too gains-from-trade logic.
Full-Text Access | Supplementary Materials
"Recommendations for Further Reading," past times Timothy Taylor
Full-Text Access | Supplementary Materials
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