regional earnings differences in great britain evidence from the new earnings survey hemmings p j 1991 regional earnings differences in great britain evidence from the new earnings survey reg studies 25 123 133 previous analysis comparing earnings between regions of great britain has concentrated upon the earnings of male employees using a large micro data base this paper takes a broader approach by examining earnings differences for female and part time employees as well as male employees human capital models are used to explain the variation in earnings in terms of characteristic differences and reward effects a restricted model with no regional element is tested against more general models which allow for regional variation in the constant term only and in both the constant and coefficients of the equations the most general model indicates that equations for the earnings of males display greater regional heterogeneity than those for females whilst the south east of england is the most distinctive region in terms of employee characteristics and in the returns to those e

efficiency and equalization payments in a federal system of government a synthesis and extensions of recent results this paper investigates the rationale for a system of equalization transfers in a federal system of government the existing sources of inefficiency of resource allocation in economies with more than one level of government are synthesized in the framework of a simple decentralized multiprovince model with mobile factors of production the sources of inefficiency arise first because migrants respond at the margin to incorrect signals owing to the phenomena of rent sharing and fiscal exterality and second because of global rather than local inefficiencies the model is then extended to consider the role of the federal government in providing intergovernmental transfers in the face of such inefficiencies in addition to synthesizing the sources of inefficiency in federal models the equity arguments for equalization are briefly recounted efficacite et paiements de perequation dans un systeme federal de gouvernement synthese et extensions de certains resultats recents ce memoire examine la logique qui soustend un systeme de paiements de perequation dans un systeme fdderal de gouverement les auteurs utilisent un modele simple d un systeme multi provincial decentralise avec des facteurs de production mobiles pour definir les sources d inefficacite dans l allocation des ressources dans les dconomies qui possedent plus d un niveau de gouvernement ces inefficacites proviennent de ce que d abord ceux qui se deplacent le font en reponse a la marge a des signaux incorrects engendres par le partage de la rente sur la base de la residence et par les phenomenes d exteralites fiscales elles sont aussi le resultat d inefficacites globales plutot que locales dans le cadre de ce modele les auteurs analysent le role du gouvernement federal effectuant des transferts inter gouverementaux pour corriger ces inefficacites en plus de presenter une synthese des sources d inefficacite dans les regimes federaux les auteurs font un bref rappel en passant a l ensemble des arguments fondes sur l equite qu on utilise pour rationaliser les paiements de perequation this paper is a linear combination of two papers presented at the may 1982 meetings of the canadian economics association in halifax entitled the case for equalization payments by the authors and recent developments in the theory of regional economic policy in canada by boadway the authors are grateful for comments by the discussants jim johnson and baxter macdonald and by jack mintz brian scarfe gerard belanger david sewell tom courchene and the referees we are especially heavily indebted to dan usher for many stimulating comments and suggestions while the work was in progress some of the above persons will undoubtedly disagree with the emphasis we have chosen to put on various aspects of the analysis for policy purposes support for some of this work has been provided by the economic council of canada and is gratefully acknowledged canadian journal of economics revue canadienne d economique xv no 4 november novembre 1982 printed in canada imprimd au canada 0008 4085 82 0000 0613 01 50 1982 canadian economics association this content downloaded from 207 46 13 127 on wed 12 oct 2016 04 27 47 utc all use subject to http about jstor org terms 614 robin boadway and frank flatters

the excise tax effects of the property tax abstract this paper constructs a theory of how differences across regions in property tax rates affect product prices and factor prices for a model where labor and capital are perfectly mobile between regions it is shown that consumers residing in different regions face the same nontraded good prices even when property tax rates differ across regions

the north south divide questions of existence and stability this paper investigates the relationship between regional earnings and unemployment by use of information primarily from the general household surveys of 1975 and 1982 conventional earnings functions are augmented to capture the effects of the level and duration of unemployment and of regional differences in living costs in common with previous studies the authors find personal characteristics and the occupation or industry of employment to be important in earnings determination in this paper however they generally find that although higher unemployment is associated with reduced regional earnings ceteris paribus long term unemployment has little influence in regional earnings determination copyright 1990 by royal economic society

inflation proof currency the feasibility of variable commodity standards under a proposal by robert l greenfield and leland b yeager 1989 the value of currency is tied to the value of a defined basket of goods by indirect convertibility the note issuing bank offers to redeem its currency for sufficient gold to buy the basket in the market the authors find that this arrangement cannot be applied to the currency that is the medium of account for quoting prices of goods and that it would imply unlimited change in the gold price when the price of the basket deviates from unity a feedback rule with slower price adjustment may however be feasible copyright 1993 by ohio state university press

why democracies produce efficient results by applying the standard tools of microeconomic analysis i argue that democratic markets work as well as economic markets in particular i show that previous work has greatly exaggerated the existence of principal agent and informational problems in electoral markets and has drawn incorrect conclusions

optimality properties of alternative systems of taxation of foreign capital income foreign source capital income taxes are examined from the point of view of optimal taxation in the framework of a simple economy with international real capital flows a taxonomy of alternative systems of such taxation is first presented showing how crediting and other tax parameters induce what are called source based residence based and related systems next tax rates are determined that are optimal from a single country s point of view given those of the others the achievability of these rates under the various systems is analyzed finally tax rates that are optimal from an international point of view are considered again achievability of an international optimum under the various systems is considered leading to the main conclusions that i a pure residence based system in all countries can achieve an international fiscal optimum ii it cannot however be sustained as an equilibrium

interprovincial migration and local public goods the objective of this paper is to test whether fiscally induced migration occurs in canada that is whether interprovincial migration flows are influenced by government tax and expenditure policies in order to do so a multinominal logit model of migration is developed in which individuals choose to live in the province where their utility would be highest the model is estimated using aggregate data for the period 1962 81 the results indicate that migration is influenced by provincial government spending trough the magnitude and direction of the effect differs with the type of government spending the implication of these results is that intergovernmental transfer payments and provincial natural resource revenues also have the potential to influence migration flows in canada summary in fre excerpt

nash equilibria in models of fiscal competition abstract this paper analyzes nash equilibria in a simple model of an economy with jurisdictions engaging in fiscal competition small number nash equilibria in which tax rates are the strategic variables are shown not to coincide with nash equilibria in which public expenditure levels are the strategic variables

energy r d portfolio analysis based on climate change mitigation the diverse nature and uncertain potential of the energy technologies that are or may be available to mitigate greenhouse gas emissions pose a challenge to policymakers trying to invest public funds in an optimal rd in the other approach benefits are defined as the cumulative cost reduction in both approaches a return on investment roi criterion is established based on benefits divided by federal r d investment the roi is then used to build a first order approximation of an optimal applied energy r d investment portfolio although these methodologies have been used to inform an actual budget request the results reflect only one input among many used in budget formulation the results are therefore not representative of an official u s government or doe funding recommendation but should instead be considered illustrative of the way in which methodologies such as these could be applied

micro estimates of public spending demand functions and tests of the tiebout and median voter hypotheses responses to questions given to a random sample of michigan households are used to estimate public spending demand functions while income and price elasticities are similar to those obtained from aggregate data positive income elasticities appear to arise because public services are distributed in a prorich manner a relatively small variance in spending demands among urban and suburban communities in metropolitan areas with substantial public service variety suggests that the tiebout mechanism works this interpretation is supported by the fact that actual spending conforms substantially to desired levels in urban areas but less so in rural areas with little public sector choice

local pay determination theoretical models of local pay are reviewed ranging from neoclassical perspectives unemployment wage trade off models and segmented labor market approaches the empirical work on u s north south differentials is discussed for the u k studies of the extent of and trends in geographical pay differentials are considered as well as behavioral explanations focusing on the role of excess demand the issue of adjustment processes is then discussed both in theory and in relation to empirical work for the u s and u k this discussion focuses largely on geographical spillover effects in terms of origins evidence and issues of identification finally the impact of certain impediments in the adjustment process are considered specifically in relation to the u k these concern the role and influence of national wage bargaining as well as factors inhibiting labor migration stemming from the housing market and the climate of the national labor market copyright 1992 by blackwell publishers ltd

a general equilibrium analysis of property tax incidence abstract mieszkowski s 1972 analysis of the new view of property tax incidence dealt with a model of an economy containing only one sector and three factors in which labor was immobile brueckner 1981 incorporated an equal utility condition into his general equilibrium analysis of property tax incidence to take worker mobility into account his model however did not have capital as an input factor and the benefits of public expenditure were ignored this paper extends previous research by using a general equilibrium model of an economy with two sectors three factors and multiple communities both capital and labor are assumed to be mobile and brueckner s labor mobility condition is modified to include public expenditure effects while the results of the analysis support the new view they qualify the original mieszkowski studies in many aspects the model also sheds light on tax incidence in no tax communities which was often ignored in earlier studies

a model of the bfh payments system the bfh payments system was introduced by robert l greenfield and leland b yeager in a laissez faire approach to monetary stability 6 the key element of their proposal is to dispense with base money and instead tie the means of payment to a nearly comprehensive bundle of goods and services by the institution of indirect convertibility their system promises to be free from inflation and several sources of recession while bfh was named to credit fischer black i eugene fama 3 4 and robert hall 10 11 it must not be confused with their specific institutions or arguments greenfield and yeager modified their ideas and have continued to develop the system 20 5 21 8 9 the purpose of this paper is to present a model of bfh consistent with simple textbook macroeconomics contrary to first impressions bfh is best understood using the concept of money but the absence of base money makes the quantity theory inappropriate for analysis instead a simple keynesian model illustrates the determination of interest rates real income the price level and the quantity of money aggregate supply the is relationship and money demand are conventional only the money supply process is unusual

a theory of interregional tax competition a general equilibrium model is constructed to study tax competition where local governments compete for capital by holding down property tax rates and public expenditure levels an exact definition of tax competition is provided and both the existence and nonexistence of tax competition are shown to be theoretically possible it is argued however that tax competition must occur under empirically reasonable conditions inefficiency in public production is also explicitly modeled the amount of capital used to produce a given level of public service output is shown to be greater than that which is required to minimize costs evaluated at the prices facing private firms

competition in interregional taxation the case of western coal markets for many products are dominated by small group of states or countries with a natural advantage in the marketplace because of some initial endowment of resources favorable climate or location the purpose of this paper is to explore how such markets involving a few political jurisdictions interact noncooperatively we examine how such a market might be structured and operate and the extent of monopoly rent that can be extracted in the absence of collusion we answer these questions for an empirically estimated model of western u s coal in which two states montana and wyoming dominate production we demonstrate that in this market the amount of rent that can be extracted is greatly reduced through competition relative to a cartel nevertheless even with two producing states competing against each other significant rents can be captured significant enough to refute the contention that little rent can accrue without a cartel

bargaining in legislatures bargaining in legislatures is conducted according to formal rules specifying who may make proposals and how they will be decided legislative outcomes depend on those rules and on the structure of the legislature although the social choice literature provides theories about voting equilibria it does not endogenize the formation of the agenda on which the voting is based and rarely takes into account the institutional structure found in legislatures in our theory members of the legislature act noncooperatively in choosing strategies to serve their own districts explicitly taking into account the strategies members adopt in response to the sequential nature of proposal making and voting the model permits the characterization of a legislative equilibrium reflecting the structure of the legislature and also allows consideration of the choice of elements of that structure in a context in which the standard institution free model of social choice theory yields no equilibrium

the incidence of regional taxes in a general equilibrium framework abstract a six region general equilibrium model of the united states is presented and used to evaluate the incidence of state local business taxes because this formulation allows for labor and capital mobility the provision of public goods distinctions between household and business level taxes and the interaction of state local and federal tax systems numerical analysis is particularly appropriate simulations show that capital improvements generally bear the average economy wide burden of business taxes levied on them regardless of whether a multilateral or unilateral policy change is considered or whether the alternative tax is imposed on immobile resources or household income however for other factors of production both mobile andimmobile the effects vary across scenarios a demonstration that incidence should not be thought of as a single outcome or value

changing the name of the game rsa indigenous and inward investors and the national assembly for wales the recent rejection of british aerospace s bae application for 25m in regional selective assistance rsa for its broughton facility in north wales and subsequent granting of 19 5m in other aid packages has highlighted an important policy issue now facing development areas across the uk in particular how do governments balance the ability of foreign investors to lever increasingly scarce economic development resources from central coffers on a continuing almost automatic basis against the new policy agenda which is focusing to a much higher degree on the needs of indigenous firms using a new database on rsa to contrast the fortunes of bae with those of several prominent inward investors this article illustrates the complex political economy that now surrounds grant decisions in post devolution uk

the role of technological availability for the distributive impacts of climate change mitigation policy the impacts of the availability of low carbon technologies on the regional distribution of mitigation costs are analyzed in a global multi regional integrated assessment model three effects on regional consumption losses are distinguished domestic measures trade of fossil energy carriers and trade of emission permits key results are i gdp losses and a redirection of investments in the energy system towards capital intensive technologies are major contributions to regional consumption losses ii a devaluation of tradable fossil energy endowments contributes largely to the mitigation costs of fossil fuel exporters iii in case of reduced availability of low carbon technologies the permit market volume and associated monetary redistributions increase the results suggest that the availability of a broad portfolio of low carbon technologies could facilitate negotiations on the permit allocation scheme in a global cap and trade system

human capital and regional wage gaps lopez bazo e and motellon e human capital and regional wage gaps regional studies this paper uses micro level data to analyse the effect of human capital on regional wage differentials the results for the set of spanish regions confirm that they differ in the endowment of human capital but also that the return that individuals obtain from it varies sharply across regions regional heterogeneity in returns is especially intense in the case of education particularly when considering its effect on the employability of individuals these differences in endowment and especially in returns to human capital account for a significant proportion of regional wage gaps lopez bazo e and motellon e lopez bazo e et motellon e le capital humain et les ecarts des salaires regionaux regional studies cet article emploie des m

a regional general equilibrium model of the united states tax effects on factor movements and regional production a six region general equilibrium model of the united states is used to assess the potential long run effects of state local and federal tax policies on output and the allocation of factors across regions and sectors the nonuniform structure of state local taxes and their interaction with federal taxes means that regional output is affected quite differently than would be projected solely on the basis of changing average regional tax burdens the study provides a useful indication of conceptual and empirical issues that must be considered in further regional modeling efforts issues which do not arise in closed economy national models copyright 1989 by mit press

the importance of local fiscal conditions in analyzing local labor markets a new test of the compensating wage differential model is proposed the logic behind roback s model which shows how differences in nonproduced amenities may be reflected in intercity wage differentials is extended to the case of differences in local fiscal conditions represented by tax rates and publicly produced services results show that differences in local tax rates and services provisions do generate compensating wage differentials across cities the effects of a particularly large set of taxes and effective services output measures are examined differences in local fiscal conditions are shown to play important roles in explaining the variance in intermetropolitan wages

competitive tax theory in open economies constrained inefficiency and a pigovian remedy abstract in an economy with multiple governments each is constrained to raise revenue for public expenditures using distortionary taxes on a directly mobile tax base a government is said to be competitive if the total cost of its decisions including the excess burden is perceived to be internalized the competitive equilibrium allocations are not constrained efficient in general there is another set of distortionary taxes and associated public expenditures for which all individuals in the economy are better off it is shown that the source of the failure can be interpreted as a missing market and the form of the best decentralized remedy is derived

labor mobility and the incidence of the residential property tax abstract this paper analyzes the incidence of the residential property tax in an economy with two communities workers are perfectly mobile so that their utility levels are equal in the two communities in equilibrium the property tax is modeled as an ad valorem tax on housing services

decentralizing antipoverty program delivery in developing countries we study the effects on accountability in government service delivery of decentralizing administration of an antipoverty program while governments at both central and local levels are vulnerable to antipoor policy biases owing to political capture centralized delivery systems are additionally prone to bureaucratic corruption owing to problems in monitoring bureaucratic performance decentralizing the delivery system promotes cost effectiveness and improves intraregional targeting at low program scales but interregional targeting may deteriorate as central grants to high poverty regions shrink owing to high capture of local governments by local elites in such regions

optimal fiscal policy for a state or local government abstract state and local government services are enjoyed by and taxes borne by two groups residents and non residents this paper addresses the question if state and local governments maximize their residents welfare and cannot distinguish between individual residents and non residents but know the aggregate characteristics of the two groups what set of taxes subsidies and public goods should they choose some of the results obtained are i even when all commodities are taxable and equity is ignored the existence of non resident consumption makes uniform taxation non optimal ii in some cases whether a commodity should be taxed or subsidized is independent of its own price elasticity iii central cities may be subsidized by suburban residents and iv the ability of state and local governments to redistribute is inversely proportional to the openness of the economy

optimality free mobility and the regional authority in a federation abstract this paper examines the efficiency properties of a federation characterized by strategically competing regions and freely mobile homogeneous individuals analyses of this economy have concluded that achieving a pareto optimal will require intervention by a national authority this paper makes one basic point the nash equilibrium of regional authority behavior is pareto optimal the implication is that there is no role for a national authority in either providing interregional transfers or correcting for decentralized provision of public goods the nash equilibrium involves samuelson public goods provision and regions purchasing preferred population distributions with optimal interregional transfers

explaining urban rural income and wage differentials a study using aggregate data for india probabilistic migration models generally assume the existence of an exogenous and large gap between wages in the urban and rural sectors yet empirical support for this assumption is scarce an attempt has been made to estimate urban and rural expenditures and wages across states in india to measure the size of the urban rural gap using principal components a hedonic wage differential equation is estimated to determine whether the gap can be explained by differences in the structures of the two sectors on an average nominal urban earnings are 40 larger than rural earnings the real gap is roughly 17 more than 70 of this differential is explained by compensating differentials

interjurisdictional capital mobility fiscal externality and a corrective subsidy abstract recent studies emphasize that local property taxation may result in inefficiently small amounts of local public spending this paper shows that the inefficiency can be traced to a fiscal externality when one jurisdiction increases its taxes it causes a flow of capital to other jurisdictions that increases their tax revenues the inefficiency can be corrected with a subsidy that internalizes the externality key empirical parameters determining the magnitude of the externality are identified illustrative calculations indicate that subsidy rates on the order of 40 might be required to achieve efficiency

property taxation congestion and local public goods abstract the residential property tax has been viewed as a congestion fee even if it distorts housing decisions this paper shows that the rule for a competitive jurisdiction s optimal public good supply may be written in a form in which no such role appears congestion costs enter the cost side of this rule in the same way that they enter when only a land tax is available the new rule is reconciled with an alternative rule in the literature which contains no congestion costs

the industrial organization of congress or why legislatures like firms are not organized as markets this paper provides a theory of legislative institutions that parallels the theory of the firm and the theory of contractual institutions like market institutions legislative institutions reflect two key components the goals or preferences of individuals here representatives seeking reelection and the relevant transactions costs we present three conclusions first we show how the legislative institutions enforce bargains among legislators second we explain why given the peculiar form of bargaining problems found in legislatures specific forms of nonmarket exchange prove superior to market exchange third our approach shows how the committee system limits the types of coalitions that may form on a particular issue

is there a compensating wage differential for high crime levels first evidence from europe abstract this paper investigates whether high regional crime levels lead to a compensating wage differential paid by firms in the respective region using data from german social security records official police statistics and official statistics for 2003 2006 i consider both violent and non violent crimes and use three way error components estimators to control for individual and regional heterogeneity the findings suggest that wages are practically unrelated to changes in crime rates this result is robust over a wide range of subgroups there is however some evidence that crime rates influence land prices

alternative models of earnings determination and labor market structures there are three distinct research traditions in the analysis of individual earnings determination human capital or earnings function analyses aggregate wage analyses and labor demand analyses an important and incongruous aspect of each is the treatment of geographical differences in labor markets this paper first investigates the magnitude and character of geographical wage differentials the sizable differences discovered there are then related to the existing and highly simplified models of labor market differences while the two major classes of models compensating differentials and labor demand differ significantly in assumptions and implications it is impossible to distinguish adequately between them there appears to be a clear need for more structural analyses of labor market operations

taxation and the tiebout model the differential effects of head taxes taxes on land rents and property taxes on the theory of state and local public finance is the seminal paper by charles tiebout 1956 tiebout constructed a multijurisdictional model in which independent local governments offer a wide variety of expenditure and tax policies and perfectly mobile consumers reveal their preferences for local public goods through their choice of residential community he argued that under such circumstances local public service provision would be efficient the tiebout model has formed the basis of a vast number of subsequent articles in the state and local public finance literature and has also been very influential in urban and regional economics the efficiency properties of various tiebout type models of local public good provision have been examined and the role of politics in these models has been debated at length in this literature of more direct relevance to this paper however is the fact that although tiebout had little to say directly about taxation simply assuming the existence of head taxes subsequent analyses have used adaptations of this model to examine the effects of local head taxes land taxes and property taxes it is the literature on the efficiency and distributional effects of alternative local taxes that is the subject of this survey 1

environmental and land use regulation in nonrenewable resource industries implications from the wyoming checkerboard this paper examines how the oil and soning that these effects should be similar gas industry responds to changes in environmental to those of production and property taxes and land use regulations pertaining to drilling by like stollery however they do not conexamining differences in regulatory practices on sider the situation where environmental federal and private land a simulation model for regulations directly affect explo ration and wyoming is used to estimate losses of oil and gas development output over the next 60 years because of higher activities in any case the drilling costs found on federal property the pres limited number of studies in this area and ent value of these losses comes to about 800 mil their narrow scope is surprising in light of lion a lso this case study is of interest because it the importance of environmental complishows that future production is more sensitive to ance costs to firms that produce from nonchanges in environmental regulations that apply to renewable resources and because of the drilling than to changes in severance taxes levied observation by jaffe et al 1995 that a on production

the incidence of heterogeneous residential property taxes abstract in an economy with multiple tax jurisdictions the distribution of the burden of heterogeneous residential property taxes is shown to depend on the elasticity of demand for housing the elasticity of substitution between land and capital in housing production the elasticity of supply of land to individual tax jurisdictions and the degree of population mobility between tax jurisdictions it is demonstrated that the excise effects of the residential property tax may not cancel across jurisdictions and the average rate of tax may overstate or understate the burden on residential capital

explaining saving investment correlations national saving and investment rates are highly positively correlated in virtually all countries this is puzzling as it apparently implies a low degree of international capital mobility this paper shows that the observed positive correlation between national saving and investment rates arises naturally within a quantitatively restricted equilibrium model with perfect mobility of financial and physical capital the model is consistent with the fact that saving investment correlations are larger for larger countries but are still substantial for small countries further the model is consistent with the finding that current account deficits tend to be associated with investment booms copyright 1993 by american economic association

factor intensities and factor substitution in general equilibrium abstract this article examines how factor intensity rankings between industries and the economy wide asymmetry in the degree of factor substitution combine to influence the manner in which changes in relative commodity prices affect the factoral distribution of income the reciprocal influence of factor endowment changes on the composition of outputs is also discussed the analysis is undertaken in a general three factor two commodity framework the minimal sized model that allows both influences to affect factor prices and admits of the possibility of complementarity between factors factors which are good substitutes find their returns behave somewhat similarly when commodity prices change while factors which are complements experience strongly asymmetrical fortunes a crucial role is played by a comparison of the share of the middle factor in each sector

on pareto improving commodity tax changes under fiscal competition this paper shows that when a noncooperative fiscal equilibrium of the mintz tulkens 1986 model of tax competition is inefficient pareto improving changes are positive for the taxes of both regions under concavity of the regions welfare functions it also identifies a class of such equilibria that are always efficient

the value of technological advance in decarbonizing the u s economy abstract this paper examines the role of technology in managing the costs of a carbon constraint on the u s economy two portfolios of technology are examined one reflects modest investments in climate friendly technologies the other more aggressive development the analysis indicates that the development of a broad range of low to zero carbon emitting technologies can substantially reduce but not eliminate the economic cost of decarbonization by enabling large scale emission reductions on the supply side costly reductions in demand are avoided in particular the emergence of electricity as a low carbon fuel provides a powerful lever for achieving reductions in other sectors of the economy at lower cost while the analysis suggests that there is no free lunch the bill which may indeed be well worth paying can be greatly reduced through an accelerated r d program and successful diffusion of new technology throughout the economy

international trade and capital mobility between diversified economies abstract this paper reconsiders and simplifies the theory of international trade with foreign investment while concentrating on significant gaps in the analysis of the globally diversified case where both countries of the two commodity two factor model remain incompletely specialized the analysis goes beyond previous literature by 1 deriving an important condition for stability of equilibrium 2 investigating the effects of import tariffs and foreign investment taxes on the international allocation of capital 3 examining the actual signs of optimal first best and other tariffs and taxes and 4 developing new and plausible conditions for existence of global diversification

property taxes and property values evidence from proposition 212 abstract we examine the effect of proposition 2 1 2 on revenues and housing prices in massachusetts communities that were initially constrained by the law saw large increases in state aid and the use of fees we use these initial constraints as instruments for changes in other components of revenue while treating the change in the property tax as exogenously determined by proposition 2 1 2 our results strongly suggest that communities that were able to increase their property taxes more rapidly saw greater increases in their housing values in the period following passage of the law

identifying productivity and amenity effects in interurban wage differentials this study focuses on the relative importance of amenity and productivity differences in determining wage differentials across urban areas the approach developed takes advantage of the connection between land and labor market clearing conditions required for locational equilibrium of households and firms data on recent movers are used to estimate equilibrium wages and rents for a sample of metropolitan areas this information is then used to identify amenity and productivity components of wages for each city in the sample using national estimates of the relative share of land in consumption and production differences in productivity and amenities are found to be roughly equal sources of wage variation across the sample

a laissez faire approach to monetary stability this paper develops some diverse hints for a new monetary system offered separately by fischer black eugene fama and robert e hall for reasons that will become evident though we should perhaps say payments system instead of monetary system none of the economists mentioned has actually proposed the particular system set forth here nor examined all its properties and we call it the bfh system not to implicate them but only to give credit for some component ideas and to have a convenient label l regardless of who if anyone may actually advocate the system contemplating it is instructive it illuminates by contrast some characteristics of our existing and recent systems

balancing solar pv deployment and rd d a comprehensive framework for managing innovation uncertainty in electricity technology investment planning abstract we present a new framework for studying the socially optimal level of generating capacity and public rd d investments for the electric power sector under decision dependent technical change uncertainty we construct a bottom up stochastic electricity generation capacity expansion model with uncertain endogenous rd d based technical change focusing on solar pv rd d investment planning for its current prominent role in sustainable energy and climate policy deliberations we characterize the decision dependent process of technical change uncertainty as unknown outcomes of rd d investments that increase the likelihood of success with increasing amounts of rd d and calibrate to a novel expert elicitation dataset that accounts for this decision dependence the problem is framed as a multi stage decision under uncertainty where the decision maker learns and adapts to new information between decision periods specifically our application considers four decision stages with the decision maker choosing investment levels for new capacity and solar pv rd d while learning about rd d outcomes that can reduce solar pv costs between each stage the problem is thus formulated to match the manner in which real world decisions about rd d investments in renewable energy are made and avoids common assumptions of perfect foresight or uncertainty but no learning that are often used in practice numerical results show that when uncertainty and learning features are both included the optimal solar pv rd d investment strategy changes from solutions using other methods considering uncertainty and learning results in solar rd d investment differences as high as 20 percent lower in the first stage and 300 percent higher in later stages we also show that when uncertainty is considered without learning the fraction of new solar pv capacity investments can be depressed overall this paper shows that it is possible to unify several realistic features of the deployment and development problem for the electricity sector to meet sustainability goals into one framework

can capital income taxes survive in open economies optimal tax theory forecasts that small open economies should not tax capital income yet countries do tax capital income why the inconsistency this paper shows that use of the double taxation convention whereby governments credit taxes paid abroad against domestic taxes helps explain this inconsistency in particular capital income will be taxed if a dominant capital exporter acts as a stackelberg leader when setting its tax policy due to the convention other countries will then tax capital imports making it attractive for the dominant capital exporter to tax capital income without a dominant capital exporter however the model still forecasts no capital income taxes can taxation of capital income survive the increasing integration of world capital markets a number of recent papers suggest not diamond and mirrlees 1971 for example showed that a small open economy would not choose to tax the income generated by the physical capital located within the country this is because production would occur efficiently under an optimal tax system which requires that domestic investments earn the rate of return available on the world capital market in principle a country might still attempt to tax income earned on the savings of its residents however in practice income from savings invested outside the country is virtually impossible for a government to monitor individuals therefore can evade tax on such savings with very little risk as razin and sadka 1989 show such capital flight in theory eliminates any possibility of a tax on savings investors will simply transfer their funds abroad to avoid taxation yet virtually all countries do in fact tax the capital income earned by corporations and individuals located within their borders how can the theoretical forecast of no capital income taxation be reconciled with this simple observation it is difficult to use existing models with any confidence to analyze the implications of changes in capital income tax rates if these same models forecast that countries should never tax capital income

economic and political foundations of tax structure this paper derives the essential elements of tax systems as the outcome of rational behavior in a model w here government maximizes expected support and where opposition to ta xation depends on the loss in full income the analysis treats the le vel of expenditures as endogenous and integrates the influence of adm inistration costs with that of political and economic factors tax st ructure is shown to be a system of related components in equilibrium a final section compares results to two alternative approaches opti mal taxation and the leviathan model copyright 1988 by american economic association

efficient tax exporting in a multijurisdiction economy with free mobility of households between communities some portion of any community s tax is incident upon nonresident landowners it is shown that when the objective of a community is taken to be the level of satisfaction of its residents a fully efficient allocation is a nash equilibrium of the decentralized game in general no local tax structure that restricts a community s tax base to residents can attain the optimum thus tax exporting is necessary for independent local government behavior to be consistent with efficiency

commodity tax competition between member states of a federation equilibrium and efficiency we first describe regional market equilibria whereupon consumers of each region allocate their purchases of private goods between domestic and nondomestic ones according to the structure of relative prices taxes and transportation costs next regional optimal tax levels and public good quantities are derived the tax of the other region being held constant fiscal competition arises from the ability of one region in choosing its tax to alter the tax base of the other

regional effects of taxes in canada an applied general equilibrium approach this paper reports on an applied general equilibrium regional model for canada which is used to investigate the regional effects of taxes earlier literature on regional tax effects is reviewed and the main features of the model are briefly described existing literature on regional tax effects is largely non quantitative and does not discuss several important regional features of taxes such as taxes which are predominantly on products or industries located in particular regions results suggest that regional effects of taxes can be significant and in the canadian case at least do not tend to counterbalance one another in general richer regions tend to lose and poorer regions gain from federal taxes but other regional characteristics such as manufacturing non manufacturing or resource non resource can be important this abstract was borrowed from another version of this item

feasible climate targets the roles of economic growth coalition development and expectations the analysis presented here follows the design specified by the energy modeling forum emf transition scenarios study on achieving climate stabilization goals with delayed participation by developing countries we use the merge model to evaluate the core emf scenarios for both the international and the us specific studies our results indicate that a radiative forcing target equivalent to 450 ppmv co2 e cannot be met even allowing for full participation and overshoot during the entire 21st century with delayed participation of developing countries a target of 550 ppmv co2 e is only attainable with pessimistic assumptions about economic growth and even then only at very high cost a target of 650 ppmv co2 e can be met with delayed participation for a more affordable cost we highlight sensitivities to the core scenarios in two key dimensions i the effect of the unfolding global financial crisis on the rate of economic growth and ii the willingness of initially non participating countries to agree at the beginning of the next commitment period i e 2012 to join the coalition at a pre specified date in the future we find that while the recession does not fundamentally change the crucial role of developing country involvement advance agreement on their part to future targets could substantially reduce costs for all countries

pigou tiebout property taxation and the underprovision of local public goods abstract pigou s proposition that the use of distorting taxes rather than neutral head taxes reduces public service levels is examined in this paper a simple model with a national system of competing local governments is utilized to demonstrate that the use of a distorting property tax on mobile capital decreases the level of residential public services the case where public services are an intermediate producer good is also considered

strategy and market structure in western coal taxation this paper analyzes the potential market power of western states in setting coal severance taxes and the emphasis placed by these states on the development of their coal resources vs obtaining tax revenues three market structures are analyzed one involves a western regional cartel setting taxes collectively the other cases are noncooperative tax equilibria with montana and wyoming competing against each other we conclude that the western states seem to be primarily concerned with revenue collection and are very efficient extractors of economic rent

designing tax policy in federalist economies an overview abstract the emerging economic federations of the european union russia and south africa along with the established federations in australia canada and the united states confront the task of designing the institutions for federal fiscal policy this paper reviews the literature on the design of tax policy in federalist economies we conclude that taxation by lower level governments can lead to significant economic inefficiencies and inequities the usual assignment view of federalis recommends central government policies for example resident based taxation or grants in aid to correct these failures these recommendations assume that the central government will act as a benevolent social planner the political economy view of federalism suggests that this assumption is in error and that additional federalist institutions must be considered alternative legislative structures and constitutional rules are considered

majority choice of tax systems in single and multi jurisdictional economies abstract we examine majority choice of tax instruments in an economy with heterogeneous households in our framework majority voting equilibrium exists despite the multidimensional policy choice set we examine single and multi jurisdictional economies we identify five competing incentives that influence choice of tax instruments equilibria generally entail a mixture of tax types with multiple jurisdictions strong reliance on head taxation in rich communities arises to deter poorer households from immigrating in spite of local incentives to use alternative tax instruments to redistribute wealth if relocation costs preclude inter community mobility the equilibrium tax system is fundamentally affected with redistribution incentives then dominating choice of instruments and tax rates limiting or eliminating head taxation fundamentally alters stratification public good provision levels and tax systems

tax reform implications for the state local public sector he tax reform act of 1986 should provide valuable information which will allow economists to distinguish among competing models of the determinants of state and local spending and taxes this paper outlines the implications of current public finance theory and empirical work for the direction and where possible likely magnitudes of the effects of the tax bill after it is fully in effect in 1988 we analyze separately the effects of the bill on the level and distribution of state and local spending and on the mix of revenue sources employed by state and local governments the effects of the tax reform in this area will be fairly small we expect state and local spending to fall by between 0 9 percent and 1 9 percent with the lower end of the range the more plausible a reduction in the number of itemizers taxpayers who will be unable to deduct their state and local income and property taxes will account for about half of this change the elimination of sales tax deductibility which also makes citizens pay more for state and local government accounts for slightly more than a third of the decrease in spending finally reductions in marginal tax rates which make the deductions for income and property taxes worth less to taxpayers who continue to itemize accounts for the rest moreover states will probably shift away from sales taxes toward deductible sources of revenue thereby making the effect of the tax reform on state spending smaller still the conclusion that aggregate spending is unlikely to change very much does not imply that the tax reform act is unimportant to the state and local public sector the fiscal and economic circumstances of state and local governments vary enor

estimating workers marginal willingness to pay for job attributes using duration data this paper develops and applies a method for estimating workers marginal willingess to pay for job attributes when workers job choices are characterized by imperfect information and labor market search as an application this paper analyzes the job durations of white males using data from the national longitudinal survey youth cohort and the dictionary of occupational titles estimates of workers willingness to pay derived from the job duration model are compared with those derived from an hedonic wage model

the effect of regional policy on manufacturing investment and capital stock within the u k between 1959 and 1978 rees r d and miall r h c 1981 the effect of regional policy on manufacturing investment and capital stock within the u k between 1959 and 1978 reg studies 15 415 424 the impact of u k regional policy on manufacturing investment and capital stock is examined this paper establishes that the distribution of both investment and capital stock within the u k varies with the changing phases of regional policy and that when the policy was at its strongest a sizeable proportion of u k manufacturing investment may have been diverted by the policy to the three main development area da regions no evidence was found for the hypotheses either that the policy had a greater effect the more capital intensive the industry or that it influenced the capital intensity of existing industries in das

the link between crime risk and property prices in england and wales evidence from street level data this paper uses street level data on property sales and crime rates for england and wales to investigate compensating differentials for crime risk my identification strategy relies on the use of non parametric regional time trends on various levels of spatial aggregation as well as various fixed effects for streets and wider areas to control for unobserved amenities and regional economic conditions the data comes from transaction data collected by the land registry and recently published crime maps for the whole of the uk my estimates which are robust to a range of sensible specification changes suggest that each case of anti social behaviour per ten population in the same street leads to an approximately 0 6 0 8 drop in property prices while a corresponding increase in violent crime decreases prices by roughly 0 6 1 6 and a corresponding increase in non violent crime by about 0 2 0 4 the majority of estimates are at the upper end of these intervals estimates for robbery burglary and vehicle c

compensating differences and interregional wage differentials interregional differences in average wages and earnings have been observed particularly in the north and south of the united states ever since the mid 1800s that observation has motivated several empirical attempts to determine the source of those differentials measured both in nominal and real terms and to explain why they have been maintained over time the general conclusion reached by the overwhelming majority of these studies is that the labor market has not eliminated these wage differentials even in the face of substantial interregional migration this result has at least two alternative interpretations first it would appear to contradict the theory of compensating differences as applied to the labor market thaler and rosen 1975 which stresses that under the assumptions of perfect information free geographic and intersectoral labor mobility and homogeneous consumer tastes the nominal wage rates of workers who have similar human capital characteristics live and work in similar environments and experience similar living costs are driven to equality second this result may only reflect an aggregation error in other words there may be several types of labor that are each paid different equilibrium wage rates and comprise different percentages of the workforce in each region even if the real wage paid to each class of workers is interregionally invariant a situation that instead would support the theory of compensating differences failure to distinguish accurately between labor types could produce the illusion of a wage differential this paper considers the two alternative interpretations given above as to why interregional wage differentials might exist hedonic real wage equations are estimated for four regions of the united states using observations on individual household heads drawn from the 1976 panel study in income dynamics psid this sample is of interest because the 1976 psid data contain unusually detailed measures of education work experience and occupation as well as information on workplace and job characteristics thus a more complete specification of the wage equation is permitted and the possibility of aggregation error is reduced particularly in comparison with other interregional wage differential studies several of these studies for example have been based on aggregate data from the census of manufactures fuchs and perlman 1960 gallaway 1963 scully 1969 and coelho and ghali 1971 which provide no direct measurements on the human capital of workers the remainder of the discussion is organized into three sections section ii specifies the wage equation and describes the psid data section iii then reports empirical results which are consistent with the findings based on aggregate data of bellante 1979 and coelho and ghali 1971 in that they support the theory of compensating differences more specifically for full time workers the rewards to attributes relevant in determining real wages apparently are interregionally invariant however because this result conflicts with most previous research on interregional wage differentials based on aggregate data and virtually all such research based on microdata welch 1966 hanoch 1967 hanushek 1973 1981 hirsch 1978 and sahling and smith 1983 a number of empirical comparisons are made between the present study and the approaches taken by other investigators conclusions and implications are drawn out in section iv

a theory of competition among pressure groups for political influence this paper presents a theory of competition among pressure groups for political influence political equilibrium depends on the efficiency of each group in producing pressure the effect of additional pressure on their influence the number of persons in different groups and the deadweight cost of taxes and subsidies an increase in deadweight costs discourages pressure by subsidized groups and encourages pressure by taxpayers this analysis unifies the view that governments correct market failures with the view that they favor the politically powerful both are produced by the competition for political favors

policy interactions risk and price formation in carbon markets carbon pricing is an important mechanism for providing companies with incentives to invest in carbon abatement price formation in carbon markets involves a complex interplay between policy targets dynamic technology costs and market rules carbon pricing may under deliver investment due to r d externalities requiring additional policies which themselves affect market prices also abatement costs depend on the extent of technology deployment due to learning by doing this paper introduces an analytical framework based on marginal abatement cost mac curves with the aim of providing an intuitive understanding of the key dynamics and risk factors in carbon markets the framework extends the usual static mac representation of the market to incorporate policy interactions and some technology cost dynamics the analysis indicates that supporting large scale deployment of mature abatement technologies suppresses the marginal cost of abatement sometimes to zero whilst increasing total abatement costs however support for early stage r d may reduce both total abatement cost and carbon price risk an important aspect of the analysis is in elevating risk management considerations into energy policy formation as the results of the stochastic modelling indicate wide distributions for the emergence of carbon prices and public costs around the policy expectations

an optimal taxation approach to fiscal federalism in a federal system of government each unit of government decides independently how much of each type of public good to provide and what types of taxes and which tax rates to use in funding the public goods in this paper we explore what types of problems can arise from this decentralized form of decision making in particular we describe systematically the types of externalities that one unit of government can create for nonresidents through both its public goods decisions and its taxation decisions the paper also explores briefly what the central government might do to lessen the costs of decentralized decision making

hedonic prices goods specific effects and functional form inferences from cross section time series data tests for two key elements of the hedonic model of price determination for differentiated goods are proposed when cross sectional time series data are available first the hedonic hypothesis that price is determined by sellers and buyers valuations of characteristics bundled in a good is tested against the alternative that consumers demand specific goods the sensitivity of the outcome of the test to unmeasured characteristics serial correlation or heteroscedasticity and misspecification of functional form is assessed second a novel approach to testing functional form illustrates limitations of testing hedonic specifications only against alternatives nested in the box cox functional form

monetary trends in the united states and the united kingdom a review from the perspective of new developments in monetary economics milton friedman and anna schwartz monetary trends reports a great many findings 53 are enumerated in the introduction but paramount is the stability of the demand for money in the us and britain over the past century the money stock controls money income this proposition more than anything else is the point of their painstaking investigation friedman and schwartz argue against what might neutrally be called the early post war view of the macroeconomic role of money velocity will move easily to reconcile any level of nominal income to any money stock the demand for money in this view is a will o the wisp as the authors put it monetary policy has little influence over real activity stabilization policy necessarily relies on fiscal instruments the volume is completely convincing in disposing of this idea today s reader is likely to be puzzled why so much space is devoted to a view that has no serious adherents among professional economists friedman and schwartz are generals fighting an earlier war a situation accentuated by the long lags in putting this volume into print though the opposing armies fighting for the early postwar view have withdrawn in total rout a new front has opened up and the quantity theory is fighting for its life once again worse yet the new armies are fighting under the banner of free market economics and are led by former colleagues and students of milton friedman the midwest once the stronghold of the quantity theory is now largely occupied by the enemy the new monetary economics views the quantity theory as nothing more than an artifact of government regulation an economy organized along free market principles could function without money at all fischer black 1970 it is true that the kinds of monetary regulations imposed by the american and british governments of the past century create a more or less stable relation between a certain class of assets called money and nominal spending eugene fama 1980 but different regulations would alter that relation even the real bills doctrine anathema to quantity theorists because it invites unlimited expansion of the money supply has advocates in the new school thomas sargent and neil wallace 1981 a monetary system where the government is unconcerned about the money stock has been advocated by a university of chicago economist while visiting the hoover institution john bilson 1981 restoring the intrinsic value of money not limiting its quantity has been found to be the key to successful disinflation by one member of this group sargent 1982 a critical summary titled a laissez faire approach to monetary stability written see p 1528 above for publication information

the effect of state and local taxes on economic growth a time series cross section approach results based on pooled time series and cross section data are presented which indicate that state and local tax increases significantly retard economic growth when the revenue is used to fund transfer payments however when the revenue is used instead to finance improved public services such as education highways and public health and safety the favorable impact on location and production decisions provided by the enhanced services may more than counterbalance the disincentive effects of the associated taxes these findings underscore the importance of considering the incentives provided by a state s expenditures as well as by its taxes i n the past several years a number of states have implemented limitations on taxes or expenditures while others have raised tax rates in response to the revenue shortfalls of the early 1980s although much of the ongoing debate over state fiscal structures revolves around expressed preferences over tax expenditure combinations per se the question of how state and local taxes may affect economic growth is often central to the discussion nonetheless the empirical evidence remains sparse previous studies can be divided into two broad categories assessments of the magnitudes of tax costs and statistical analyses of the relationship between tax rates and growth cost studies have tended to minimize the role of taxes in business location decisions either because state and local taxes are a relatively small component of total costs for most businesses or because interstate tax differences are small relative to other cost differences between states although these results suggest that the role played by taxes is a minor one describing how large the tax disparities may be is not the same as ascertaining their economic effect of the statistical studies many including bloom 1955 thompson and mattila 1959 and carlton 1979 1983 find no relationship between taxes and growth however kleine 1977 grieson 1980 and generally grieson et al 1977 report negative correlations romans and subrahmanyam 1979 find growth to be negatively related to the fraction of revenues devoted to transfer payments and a variable which they claim measures personal tax progressivity but positively related to business taxes with the exception of carlton who estimates models of the birth and size of firms within metropolitan areas and the grieson et al 1977 and grieson 1980 studies which consider taxes in new york city and philadelphia these authors use data from a single cross section of states more recently newman 1983 and plaut and pluta 1983 both use cross sectional data from two time periods the former finding negative effects of corporate tax rates and the latter yielding mixed results in this study we utilize a time series from 1965 through 1979 of cross sections of 48 states exploiting the richness of this data set we are able to allow for otherwise unexplained differences between states which could be expected to bias results based on a single cross section moreover this much larger sample provides the statistical power necessary to disentangle the separate effects of different categories of taxes public expenditures and transfer payments a distinguishing feature of this paper is that we explicitly recognize the government budget constraint linking these fiscal variables and the deficit or surplus in addition we have taken account of the effects of labor force characteristics by including variables for wage rates unionization and population density our results indicate that tax increases significantly retard economic growth when the revenue is used to fund transfer payments as a result programs of income redistribution are more effectively undertaken at the federal than at the state and local level on the other hand when the revenue is received for publication april 30 1984 revision accepted for publication january 22 1985 university of california davis i am indebted to the institute of governmental affairs at the university of california davis for financial support to adrienne kandel for invaluable research assistance and to two referees for their helpful comments 1 see williams 1967 morgan and brownlee 1974 vasquez and deseve 1977 and the advisory commission on intergovernmental relations 1981 see also due 1961 for a survey of the early literature including a discussion of the findings and limitations of survey results on this topic 574 1 copyright 1985 this content downloaded from 157 55 39 35 on mon 29 aug 2016 04 45 38 utc all use subject to http about jstor org terms state and local taxes and economic growth 575 used instead to finance enhanced public services such as highways education and public health and safety the favorable impact on location and production decisions provided by the improved services may more than counterbalance the disincentive effects of the concomitant taxes these findings underscore the importance of considering the incentives provided by a state s expenditures as well as by its taxes we begin by sketching a model which provides the basis for the analysis and discussing appropriate estimation techniques then in section ii we describe the data used and our hypotheses the econometric results are presented in section iii followed by brief concluding remarks in the final

welfare effects of commodity tax harmonisation abstract the european commission is currently seeking a rapid accelaration of the process of commodity tax harmonisation within the european community substantial changes in domestic tax structures are envisaged yet the welfare theoretic basis of the policy has remained obscure this note goes some way towards suggesting a welfare argument for harmonisation as a collective response to tax induced trade distortions intentional or otherwise it is shown that a programme of multilateral domestic tax reform involving convergence towards an appropriately weighted average of pre existing tax structures a kind of harmonisation is potentially pareto improving

national tax systems versus the european capital market capital taxation alberto giovannini the current structure of taxes on capital income across ec countries can be exploited by corporations to reduce tax burdens skilled individuals can indulge in tax avoidance too the liberalization of capital movements stands to turn tax avoidance into a cottage industry this article provides a primer on capital income taxes and describes strategies which reduce the tax burden from a policy perspective the question is how to avoid massive tax evasion after 1992 there is no need to harmonize if the right taxation principle is adopted two principles are contrasted the territorial principle according to which taxes are levied on domestic investment irrespective of the country of residence of the beneficiary and the worldwide principle according to which taxes are levied on domestic savings irrespective of where they are invested it is shown that the worldwide principle involves much fewer distortions than the territorial principle a strict application of this principle would effectively solve the problem of tat evasion in europe without requiring full harmonization of the tax systems its full implementation would require the abolition of withholding taxes the elimination of tax deferrals which are quite pervasive throughout europe and an in depth review of blocking and secrecy laws

jeux sans frontieres tax competition and tax coordination when countries differ in size closer international integration is putting increasing pressure on existing national tax structures this paper uses a simple two country model to address a range of consequent policy concerns focusing particularly on the role of country size differences in size exacerbate the inefficiency from noncooperative behavior harming both countries the smaller country loses from harmonization to any tax rate between those set in the noncooperative equilibrium but both countries gain from the imposition of a minimum tax anywhere in that range the fully optimal response to freer cross border trade however may be to do nothing jel h20 h77

the dynamics of u s internal migration in this paper we have theoretically derived a net migration equation and estimated it using time series data for 51 u s regions over the period 1971 1988 the results indicate that the dynamic response of net migration is stable and is significantly related to stock equilibrium changes induced by amenity differentials relative employment opportunities relative real wages and industry composition excerpt

interregional income differentials and migration their interrelationships tabuchi t 1988 interregional income differentials and migration their interrelationships reg studies 22 1 10 the major objective of this paper is to demonstrate that interregional income differential is exogenous to interregional net migration but not conversely utilizing japanese prefectural based data for 1954 82 we conduct the following three kinds of analyses to confirm this statement firstly a simple comparison of the crests of interregional time series plots was made to see which occurred first secondly sims 1972 test of causality was done to investigate causation between urban rural income differential and net migration finally per capita income and population share were examined by two dimensional phase diagram for nine regions tabuchi t 1988 le rapport des ecarts de revenus inter regionaux a la migration reg studies 22 1 10 cet article vise a demontrer que l ecart de revenus inter regional est exogene par rapport a la migration inter regionale nette ii n en va pas de

value of technology in the u s electric power sector impacts of full portfolios and technological change on the costs of meeting decarbonization goals abstract power sector decarbonization is an important pillar of climate mitigation efforts but perspectives differ about the relative competitiveness of generation technologies and how limited portfolio approaches e g where non renewable generation options are prohibited could alter the costs and likelihoods of reaching emissions reduction goals the existing literature on impacts of technological availability and cost on electric sector planning typically use models that do not have sufficient technological spatial and temporal detail to adequately resolve the economic competitiveness of variable renewable energy vis a vis dispatchable generators using a state of the art energy economic model this work examines impacts of technological availability and advanced generation technologies on u s electricity market outcomes across a range of regional market and policy contexts we show that decarbonization costs are 11 76 higher as technological options are removed from consideration incremental compliance costs for a 95 co2 reduction below 2005 levels are roughly twice as high when new nuclear carbon capture equipped units and transmission are not allowed however the economic and technical implications of limited portfolios depend on the market and policy contexts e g costs are higher with stringent targets more extensive end use electrification and lower gas prices and the costs and capabilities of the remaining options the analysis demonstrates how lower temporal and spatial resolution models likely understate the value of technology by omitting key economic and technical features of high variable renewable pathways additionally the analysis quantifies how technological change can lower costs of emissions reductions by 7 73 and how low cost battery storage can provide a hedge against higher costs when technological portfolios are limited