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

the who and why of lottery empirical highlights from the seminal economic literature lotteries operate today in many countries around the world this type of gambling is usually run by governments and is sometimes described as regressive lottery is an unfair bet so explaining the purchase of lottery tickets by risk averse consumers has been a challenge for economic theory lotteries can be analysed from either of two economic perspectives as a source of public revenue or as a consumer commodity in this paper the state of economic research on lotteries is reviewed focusing on its main empirical findings

factors influencing the adoption of state lotteries this paper explores the factors influencing the adoption of state lotteries in the united states the conceptual framework utilizes a common utility framework in which a representative legislator maximizes utility derived from the current and expected fiscal position of a state subject to a political constraint the empirical results support the theoretical hypotheses including the finding that changes in the fiscal health of the state the predicted profit potential of a lottery and the political climate of the state all affect the likelihood that a lottery is adopted by introducing a sound conceptual framework using better data than used in previous studies utilizing an appropriate estimation technique and obtaining strong results this study advances our knowledge of why states adopt lotteries

determinants of the probability and timing of commercial casino legalization in the united states the adoption of lotteries by state governments has received significant attention in the economics literature but the issue of casino adoption has been neglected by researchers casino gambling is a relatively new industry in the united states outside nevada and new jersey as of 2007 11 states had established commercial casinos several more states are considering legalization we analyze the factors that determine a state s decision to legalize commercial casinos using data from 1985 to 2000 a period which covers the majority of states that have adopted commercial casinos we use a tobit model to examine states fiscal conditions political alignments intrastate and interstate competitive environments and demographic characteristics which yields information on the probability and timing of adoptions the results suggest a public choice explanation that casino legalization is due to state fiscal stress to efforts to keep gambling revenues and the concomitant gambling taxes within the state and to attract tourism or export taxes

instant winners legal change in transition and the diffusion of state lotteries this paper investigates the determinants of legal change in a public choice framework an empirical model explaining the timing and probability of decisions to adopt state operated lotteries is developed employing a tobit estimator and explicitly considering the effects of state specific constitutional and political structures spending and tax policies and federal revenue importation evidence is presented showing that legal change is much like economic change lotteries are more likely to be adopted and to be adopted earlier where the costs are lowest relative to expected benefits state legislatures appear to be the main beneficiaries of this public choice process

who determines mexican trade policy using a political economy approach the authors analyze the pattern of protection in mexico s manufacturing sector during the period of trade policy reforms 1985 89 when mexico experienced significant trade liberalization and an important inflow of foreign direct investment they take into account the potential effect of foreign direct investment on endogenous tariff formation it turns out that the data support this analytic approach in which the formulation of trade policy reflects political support and in which the presence of foreign direct investment in the sector strongly affects the pattern of tariff protection before and after reform in mexican manufacturing especially sectors with heavy foreign direct investment received greater protection in import competing sectors although the move toward greater openness was associated with a reduction in the influence of industrial and foreign investor lobbying

socialist economics the disequilibrium school and the shortage economy the economics literature about behavior and policy in the stylized socialist economy has passed through three main phases the first phase emanated essentially from the barone lange von mises debate before world war ii its main focus was on how a socialist economy could operate efficiently in the absence of markets and private property the second phase occurring mostly since world war ii has been concerned primarily with coming to grips with the organization institutions and planning process of economies that profess to have realized some form of the ideal socialist economy several writers have sought to generalize on the basis of these empirical features without really aiming at a rigorous formal theory of the various agents in a centrally planned economy the third phase has occurred since the mid 1970s when some began to work out propositions on and formalize models of micro and macroeconomic behavior in stylized centrally planned economies and sought to buttress their theoretical approach with macroeconometric measurements that have since been used as a platform for formulating policy recommendations there have been three main strands in this third type of inquiry ickes 1984

lotto nothing the budgetary impact of state lotteries lottery revenues are often touted as an independent revenue source for states using 32 years of state financial data the fallacy of such thinking is demonstrated being the first to control for the self selection of being a lottery state it is found that overall tax revenues decline with increased lottery sales moreover it is discovered that this decline is driven by a decrease in revenues from general sales and excise taxes which is only partially offset by increases in income tax receipts such findings are attributed to a combination of behavioural and political responses following the lottery s implementation

factor movements and commodity trade as complements abstract several models are presented in which factor mobility leads to an increase in the volume of world trade the models share the common characteristic that the basis for trade is something other than differences in relative factor endowments these alternative bases for trade include returns to scale imperfect competition production and factor taxes and differences in production technology taken together the models suggest a more general idea the widely held notion that trade in goods and factors are substitutes is in fact a rather special result which is a general characteristic only of factor proportions models

inflation or monetary overhang planners preferences in china two models based on utility maximization of economic planners are developed to explain the stock of households money holdings and rate of open inflation in china for the period 1954 85 planners preferences are found to be biased in favour of monetary overhang this bias was reinforced when the bargaining strength of planners vis a vis households was weakened and during the post mao reform period this could help to explain the increase in the value of rents and level of corruption during the reform period

tariff reductions under foreign factor ownership in the presence of foreign factor ownership the traditional welfare effects of tariff reforms have to be reconsidered to include income redistribution between national and foreign owned factors jagdish n bhagwati and richard a brecher 1980 showed that when the relative amount of foreign owned factors in the host country is sufficiently large to induce a change in the direction of the trade pattern immiserizing tariff reductions may occur here it is shown that in the mirror case when foreign owned factors tend to promote the existing trade pattern i e trade promoting similar results can be obtained on the other hand when foreign factors are trade substituting tariff reductions cannot be immiserizing

a discrete time hazard model of lottery adoption this paper uses conventional logit probablitities to estimate a discrete time hazard model of lottery adoption the data set consists of a time series of cross sections on states in the us our findings suggests that politicians are more likely to support the decision a lottery is more likely to be adopted of ther is a favourable climate for gambling in the state and if a bordering state has adopted a lottery

cross country demand systems and centrally planned economies abstract the cross country data of kravis et al 1982 include data on four centrally planned economies the question is addressed as to how such data fit cross country demand systems

a discrete time hazard model of the adoption of legislative television evidence from the us congress 1961 1986 the present study examines the probability of the adoption of legislative television over time 1961 1986 in the us congress using a discrete time hazard model against a theoretical construct where political services are modelled as search experience goods evidence is provided suggesting that constituent homogeneity relative power struggles involving the legislative branches of congress and the white house and the potential prowess of legislators in congress regarding skilful use of television are all important facets in this probability model use of alternative data sources and statistical techniques such as those presented here works to provide a greater foundation of knowledge regarding the relationship between representative democracy and modern means of communication

estimates of the disequilibria in poland s consumer markets 1965 1978 in the course of work on the development of the polish agricultural policy model the author has investigated the disequilibria in poland s consumer markets since an understanding of consumer behavior is critically important in formulating plans and designing policies that facilitate the realization of plans this is an important element in the polish agricultural policy model

computational controversies in disequilibrium and shortage modelling of centrally planned economies abstract most disequilibrium and shortage models of centrally planned economies fall into three categories testable excess demand the portes school disequilibrium indicators and kornai s economics of shortage these models have generated numerous controversies and conflicting empirical results however this paper argues that some disputes are not caused by the theoretical features of the models but rather by the utilisation of different estimation methods that are not directly comparable this suggests that several controversies are more apparent than real and can be resolved through the improvement of computational techniques and statistical hypothesis testing theory

jackpot promotion model for taiwan lotto lotto was inaugurated in january 2002 and immediately became a popular activity in taiwan as the big craze following its initial introduction has subsided the growth of lotto game sales has slowed to maintain lottery sales momentum operators have conducted numerous jackpot promotions this study examines the effectiveness of various jackpot promotional strategies the analytical results can provide a valuable reference for operators and governmental authorities regarding ways of increasing lottery earnings the empirical findings of this investigation include the following 1 the effective price elasticity of lotto is 0 382 taipei fubon bank can increase the revenue gained from lotto by increasing the effective price 2 operators can significantly increase lottery sales by declaring the jackpot as an unconditional added fixed or variable bonus

reevaluating the role of trade agreements does investment globalization make the wto obsolete abstract international ownership alters the role of multilateral trade institutions by redefining pecuniary externalities among countries regardless of the underlying cause whether foreign direct investment international portfolio diversification cross country mergers or multinational firms international ownership can mitigate incentives that lead large countries to set inefficiently high tariffs at the same time however foreign ownership introduces the potential for expropriation by investment host countries which can extract rent from foreign owners by manipulating local prices the basic principle of reciprocity continues to serve as an important guide to efficiency though its application must account for the pattern of international ownership in addition to traditional measures of market access

state lotteries as duopoly transfer mechanisms government sponsored lotteries can be traced back at least as far as caesar augustus who instituted legalized gambling for the purpose of rebuilding rome mote 1984 we are also told that queen elizabeth introduced a lottery in 1549 and that lotteries were used to provide financial support for the virginia company s founding of jamestown johnson 1960 no less authority on the topic than captain john smith reported that lotteries were the reall and substantial food by which virginia has been nourished johnson 1960 161 later lotteries were used by the continental congress and several colonies to fund the revolutionary war and such venerable institutions as harvard yale princeton and dartmouth benefited from their use kaplan 1984 in more recent times lotteries provided an important source of revenues for the depressed post civil war southern states but criticism regarding their moral implications and corruption in their operation is given as the explanation for congressional action that foreclosed state lotteries in 1895 by prohibiting the use of the mail for distributing lottery tickets and information tillett 1983 in that same year congress passed a national income tax which was struck down by the court some might argue that the demise of state lotteries was related to the federal government s attempt to extend its ability to collect