international migration remittances and real incomes effects on the source country this article deals with the impact of remittances from emigrants on real incomes for different groups in their country of origin in a two by two model with one traded and one nontraded good it is shown that emigration does not necessarily raise the real income of the emigrants themselves if the traded good is capital intensive nonmigrant workers gain and capitalists lose whereas if it is labor intensive the outcome depends on what happens to the price of the nontraded good the result of a rise is that capitalists gain and workers lose while a fall has the opposite effect excerpt

international migration remittances and welfare in a dependent economy abstract this note extends the work of rivera batiz 1982 in an attempt to examine the role of remittances in determining the effects of migration on the welfare of the remaining residents in a small open economy producing both traded and non traded goods it is shown that if the flow of remittances exceeds a certain critical amount the remaining residents benefit from migration even if they do not receive any of the remittances themselves this is in sharp contrast with the results of the rivera batiz model in which the possibility of a gain for the non migrants is ruled out

foreign ownership and the theory of trade and welfare some standard topics in the theory of international trade are reconsidered in this paper by distinguishing between national and aggregate income when fixed supplies of foreign inputs are present within the home country under conditions that would ensure a national welfare gain if foreign ownership were absent international transfer economic growth or tariff policy might cause a national welfare loss in the presence of foreign ownership the techniques developed could be applied to other domestic distinctions such as those based on race sex age or ethnicity and to the theory of customs unions in a three country world

income inequality and international migration the purpose of this paper is to analyse the impact of international factor movements on the personal distribution of income in order to get clearcut results we use a simple model of trade and migration in which there are two traded goods and three factors for any given country one of the traded goods corresponds to exports and the other to imports the three factors include capital and two types of labour skilled and unskilled we focus mainly on the alternative results of international migration of the two types of labour the geographical focus is worldwide excerpt

how quickly do forecasters incorporate news evidence from cross country surveys using forecasts from consensus economics inc we provide evidence on the efficiency of real gdp growth forecasts by testing whether forecast revisions are uncorrelated as the forecast data used are multi dimensional 18 countries 24 monthly forecasts for the current and the following year and 16 target years the panel estimation takes into account the complex structure of the variance covariance matrix due to propagation of shocks across countries and economic linkages among them efficiency is rejected for all 18 countries forecast revisions show a high degree of serial correlation we then develop a framework for characterizing the nature of the inefficiency in forecasts for a smaller set of countries the g 7 we estimate a var model on forecast revisions the degree of inefficiency as mananifested in the serial correlation of forecast revisions tends to be smaller in forecasts of the usa than in forecasts for european countries our framework also shows that one of the sources of the inefficiency in a country s forecasts is resistance to utilizing foreign news thus the quality of forecasts for many of these countries can be significantly improved if forecasters pay more attention to news originating from outside their respective countries this is particularly the case for canadian and french forecasts which would gain by paying greater attention than they do to news from the usa and germany respectively

the effects of for profit status and system membership on the financial performance of hospitals this research examines whether for profit status or system membership is significantly related to the financial performance of hospitals panel data containing 573 observations of florida hospitals for 1984 through 1987 are used in a fixed effects regression model the results indicate that it is system membership rather than forprofit status that is significantly related to better financial performance for profit status is unrelated to overall financial performance system hospitals have higher revenues per admission but not higher expenditures per admission than independent hospitals the findings are consistent with the hypothesis that expanding hospital systems target locations and services that are potentially profitable

profit variability in for profit and not for profit hospitals this paper proposes two tests of the hypothesis that not for profit hospitals nfps behave differently than for profit hospitals the profit variability test states that the profits of an nfp will be less variable over time than profits of a for profit hospital if the nfp maximizes utility subject to a profit constraint the second test examines whether nfp profits respond less to change in exogenous factors such as medicare reimbursement rates than profits of for profit hospitals both tests performed on panel data from 1983 to 1988 support the hypothesis that nfps behave differently than for profit hospitals

the effects of immigration in a distorted two sector economy this paper examines the income employment and distributional impact of immigration on a recipient economy facing an administered wage distortion it is found that immigration increases the unemployment rate of the native population and shifts income distribution against labor and in favor of the nonlabor input its effect on the total income of the non immigrants is however ambiguous and depends on the relative importance of the increase in unemployment versus the net increase in the rent received by the owners of the non labor input

hospital ownership and performance this study compares the performance of three ownership forms of hospitals for profit private nonprofit and public further classified according to whether or not the hospital is run by a hospital chain data come from a 1979 national survey of u s hospitals the authors find that hospital cost is quite similar among alternative ownership forms as is profitability the results do not provide much empirical support for standard property rights theory several reasons are suggested why this may be so

international migration and real wages is there any neo classical ambiguity abstract recent research has shown that while labor emigration increases the nominal wage rate the impact on the real wage rate remains quite ambiguous the present paper reexamines the issue under the standard two factor two commodity international trade model normally employed for this purpose the principal finding of this paper is that once the problem is correctly formulated and analyzed introducing utility maximizing consumers no such ambiguity exists indeed labor emigration always leads to an increase in the welfare real wage of labor in the source country

international migration non traded goods and economic welfare in the source country a comment abstract labor emigration redistributes income in a two factor two good economy where one good is internationally non traded labor s nominal wage rises as nominal capital payments fall recent research has shown that the prices of non traded goods rise causing society s welfare to decline here the induced change in the real income of each factor is considered separately there is an ambiguity with regard to the real income of non emigrating labor if labor spends a relatively small fraction of income on the non traded good its real income may rise even though society suffers the loss of welfare

emigration and welfare in an economy with foreign capital abstract this paper examines the effects of emigration on welfare of the remaining residents r in an economy producing traded t and non traded n goods with the aid of foreign and domestic capital while the existing literature has established that emigration reduces the welfare of those left behind when foreign capital is not present in the economy the analysis below suggests that with foreign capital the effect on welfare may well be reversed the paper also compares the welfare implications of remittance flows back to the source country when they are used to finance consumption and when they are used to finance capital accumulation

temporary emigration and welfare the case of low skilled labor this article studies the implications of temporary emigration for the welfare of a source country the framework is one of general equilibrium where the economy s stocks of both capital and labor are endogenously determined by the saving and migration decisions of optimizing agents simulations of the model suggest that for realistic values of the parameters welfare of nonmigrants of the source country is maximized when the migrants are employed abroad for a period in the range of roughly 8 12 years the ideal duration is found to be an increasing function of the international wage differential migration costs and the degree to which the rights of migrants are protected in the host country

international migration non traded goods and economic welfare in the source country abstract this paper examines the economic effects of emigration in a source country producing both traded and non traded commodities it is shown that even if the economy faces fixed terms of trade emigration can still affect the welfare of the non migrants and the direction of the effect in this context will always be negative

a note on international migration non traded goods and economic welfare in the source country abstract this note extends the work of rivera batiz to the case where capital is collectively owned and the decision to emigrate entails both a withdrawal of labor services from the source country and the surrender of the ownership of capital in this framework which seems to have wide real world relevance for socialist labor managed and peasant economies it is found that emigration helps increase the welfare of the non migrant this result which seems quite robust to its specifications is exactly the opposite of that of rivera batiz and points to the need for great caution in drawing policy conclusions with regard to issues pertaining to emigration

the impact of international migration on real wages another look abstract this paper examines the issue of how emigration alters real wages in the source country the analysis is carried out first using the two class framework developed by rivera batiz 1984 and then by means of a simple model of scale economies and imperfect competition our results indicate that within these contexts real wages are likely to decline in response to emigration if 1 the migrants possess a large fraction of physical or human capital that they take with them when migration occurs or 2 emigration reduces the scale of operation of domestic firms our conclusions are compared to those of quibria 1989

hospital profits the effects of reimbursement policies this paper provides a theoretical and empirical analysis of the effect of cost based reimbursement cbr on hospital costs and charges it takes issue with previous analyses which have treated cbr as paying economic costs plus a mark up and have concluded that the mark up is too small to significantly distort hospital decision making the basic thesis here is that if reimbursement is based on costs accounting costs become a price to cost paying patients and will be optimized to maximize revenue a hospital serving both cost and charge paying private patients can set two price schedules accounting profits ratio of charges to costs are not a measure of economic profit but of relative prices to these two groups of patients in the absence of constraints from regulation or patient co payment the optimum level of accounting costs would be infinite in practice the medicare reimbursement formula links allowable costs to charges received from charge paying patients this formula creates incentives for the hospital to raise charges above the single price profit maximizing monopoly level this inflationary effect of the medicare formula does not presuppose that medicare pays less than full cost the empirical analysis of hospital laboratory costs and charges generally supports the predictions for other departments the conclusions are consistent but more tentative because of data limitations overall evidence suggests minimal cross subsidy between cost and charge paying patients comparisons of cost and charge levels in for profit voluntary non profit and government hospitals are presented but it is emphasized that inferences about relative efficiency and profitability cannot be drawn from accounting data given the incentives created by cbr

international factor movements in the presence of a fixed factor abstract to the basic model of international factor mobility is added a third immobile factor unlike the basic model the factor flows that result from a policy of free mobility are now uniquely determined additionally a large variety of privately optimal national policies is predicted each dependent upon the country s endowment pattern and the fiscal instruments available to it several of the predicted policies e g subsidies paid to migrant factors and simultaneous restrictions on the export of both factors are incompatible with the basic model