bluuebunny/crossref_metadata_2025_split huggingface dataset:
Credits, Crises, and Capital Controls: A Microeconomic Analysis
Authors: Neeman Zvika , Orosel Gerhard Oskar 
Published: December 2005

Abstract
We analyze the behavior of foreign banks who sequentially provide credit to finance projects in an emerging market. The foreign banks are exposed to both project-risks and the macro-economic risk of a currency crisis, and there are no bailout guarantees. Nevertheless, we show that it is often the case that banks provide too much credit too easily and that this behavior may precipitate the onset of a currency crisis. We demonstrate how the imposition of capital controls in the form of taxes and subsidies on foreign investment may improve the situation. Whereas most of the literature on currency crises focuses its analysis on debtor countries and thus on the borrowers' side, our paper illustrates that the lenders' side also deserves attention.
Complexity, Bounded Rationality and Heuristic Search
Authors: MacLeod W. Bentley 
Published: December 2005

Abstract
This paper explores the use of heuristic search algorithms for modeling human decision making. It is shown that this algorithm is consistent with many observed behavioral regularities, and may help explain deviations from rational choice. The main insight is that the heuristic function can be viewed as formal implementation of one aspect of emotion as discussed in Descarte's Error by Antonio Damasio. Consistent with Damasio's observations, it is shown that the quality of decision making is very sensitive to the nature of the heuristic ("emotion"), and hence this may help us better understand the role of emotion in rational choice theory.
Does Trade Promote Environmental Coordination?: Pollution in International Rivers
Authors: Sigman Hilary 
Published: December 2005

Abstract
This paper examines whether trade relationships facilitate resolution of international environmental spillovers. Trade might promote cooperation by providing opportunities for implicit side payments, allowing linkage between environmental and trade concessions, providing direct leverage over other countries' production, or instilling a perception of shared goals. Using data from the UN's Global Environmental Monitoring System (GEMS) on water quality in international rivers, the paper examines the influence of bilateral trade on pollution in rivers that cross international borders. It reports evidence of lower water pollution in rivers shared between countries with more extensive trade. Improved coordination from expanded trade may thus represent a benefit to weigh against the environmental costs of the pollution havens effect.
Cross-Country Policy Harmonization with Rent-Seeking
Authors: Hultberg Patrik T , Barbier Edward B 
Published: December 2005

Abstract
In a reciprocal market model with imperfectly competitive firms, domestic policies will differ across countries that are economically and politically diverse. We explore the implications of this standard result with regard to harmonization of environmental policies between corrupt and non-corrupt countries. Imposing a more stringent policy on a non-corrupt government will be welfare reducing to the receiving country, but may be welfare enhancing for the imposing country. However, where environmental standards are under the control of a corrupt government, it is possible that harmonization is welfare enhancing to both countries.
Environmental Regulation as Export Promotion: Product Standards for Dirty Intermediate Goods
Authors: McAusland Carol 
Published: December 2005

Abstract
We employ a stylized model of trade in dirty intermediate goods to examine the impacts of product standards on trade volumes and pollution levels. Our focus is on the case with economies of scale in intermediate good production. In this setting, changes in one country's demand for dirty inputs can feed back to affect the quality of intermediate goods offered for sale in international markets. We provide conditions under which tightening product standards in one country can raise both the profits of and exports from that country's final good producers. Greening product standards can have perverse environmental impacts: tightening rules governing emissions arising from the use of dirty inputs may raise rather than reduce local pollution.
Cost Optimization in the SIS Model of Infectious Disease with Treatment
Authors: Goldman Steven Marc , Lightwood James 
Published: December 2005

Abstract
We consider the intertemporal social optimization problem of minimizing the present value of the costs incurred from both disease and treatment. Though the analysis is complicated by the analytical failure of concavity, we are able to substantially characterize both the long run equilibria and the adjustment paths. The cost minimizing program is shown to exhibit decreased levels of treatment at higher disease levels. The socially optimal program is compared to individually rational behavior and the inefficiencies in private behavior from the infection externality are shown to cause increases in the equilibrium rate of infection.
Trade Tax Reform in a Small Open Economy with Distributional Objectives and Distortionary Taxation
Authors: Edwards Jeremy 
Published: December 2005

Abstract
The paper shows that, if two conditions are satisfied, both radial contraction and concertina trade tax reforms continue to be desirable in a small open economy that differs from the one usually considered by having distributional objectives and using distortionary taxes to raise revenue. The first condition is that some optimisation in the choice of commodity taxes takes place - at a minimum, taxes on nontraded goods must be optimally chosen while taxes on traded goods keep the consumer prices of such goods constant. The second is that pure profits are absent from every household's budget constraint. These conditions mean that some care is required in arguing the case for simple trade tax reforms in small open economies.
The Costs of A Medicare Prescription Drug Benefit
Authors: Goldman Dana P , Joyce Geoffrey F , Malkin Jesse Dylan 
Published: December 2005

Abstract
Medicare does not have an outpatient prescription drug benefit. Recently, there has been renewed interest in adding a prescription drug benefit to the program. In this paper, we present a microsimulation model to predict drug expenditures in 2001 for a representative cohort of Medicare beneficiaries under the status quo and three different plans: (1) a catastrophic plan modeled on the Medicare Catastrophic Coverage Act (PL 100-360), which was passed in 1988 but repealed one year later after higher-income Medicare beneficiaries protested new premiums, (2) a zero-deductible plan that caps out-of-pocket expenses at $4,000 per year, and (3) a zero-deductible plan that does not cap out-of-pocket expenses. We use data from a representative sample of Medicare Part B beneficiaries from the 1995 Medicare Current Beneficiary Survey (MCBS) Cost and Use file. Under the status quo, drug expenses average $1,459 per beneficiary, out-of-pocket costs average $646, and 8.2% of the population has very high expenses (defined as more than $2,000 out-of-pocket for drugs). Under a catastrophic plan, average annual drug expenses are $1,344, out-of-pocket costs are $645, and 6.8% of beneficiaries have very high expenses. Under a zero-deductible plan that does not cap out-of-pocket expenses average annual drug expenses are $1,395, out-of-pocket expenses are $459, and 5.3% of beneficiaries would have very high expenses. Under a zero-deductible plan that caps out-of-pocket expenses at $4,000 per year, average annual drug expenses are $1,414, out-of-pocket expenses are $442, and 5.5% of beneficiaries have very high expenses.
The Optimal Provision of Services in National Parks
Authors: Turner Robert W. 
Published: December 2005

Abstract
A national park provides recreational opportunities and also provides a pure public good. This paper presents an intergenerational model in which a club good and a pure public good are provided jointly. The focus is on optimality conditions for services provided by park managers. At the margin, the cost of providing the services should be balanced by the benefits of services. Services can directly enhance visitor enjoyment, both immediately and in the future; they can also affect congestion currently and in the future; they can affect the quality of park resources; and they can affect the pure public good provision. The framework developed in this paper suggests what information should be used by the National Park Service when deciding on the level and kind of services to provide.
Income Redistribution and Risky Occupational Choices
Authors: Poutvaara Panu 
Published: December 2005

Abstract
I analyze the effect of linear taxation on discrete choices between risky occupations. In the basic model, two occupations differ in the magnitude of income risks, and citizens differ in their expected productivity in one of the occupations. I derive sufficient conditions under which income redistribution encourages a greater part of the population to choose the riskier occupation associated with higher expected income. The results are then generalized to an arbitrary number of groups of citizens facing an arbitrary number of discrete occupational choices belonging to the same linear distribution class.
Horizontal Mergers Without Synergies May Increase Consumer Welfare
Authors: Stennek Johan 
Published: December 2005

Abstract
In imperfectly competitive markets firms with high costs produce positive output. The market's ability to minimize costs is also constrained by the fact that firms' costs are often private information. Mergers in such markets play a dual role. They reduce competition but they also generate an efficiency gain associated with the pooling of information. This paper shows that not only may costs be reduced as a result of merger, the price level may also decline and consumers may thus gain.
Can economic theory explain piracy behavior?
Authors: Holm Håkan J. 
Published: December 2005

Abstract
This paper investigates if economic theory can explain variations in piracy behavior between individuals and between countries. It is demonstrated that economic theory explains a notable part of the individual variation in a survey study. Individuals with a low net valuation of an original when a copy is available are more prone to engage in piracy than individuals with a higher valuation. Individuals with a low cost of obtaining and handling copies are also more engaged in piracy. The country-wise variation can also be explained by economic variables; GNI/capita and judicial efficiency explain a substantial part of this variation.
New Evidence on Eastern Europe's Pollution Progress
Authors: Kahn Matthew E 
Published: December 2005

Abstract
Under communism, Eastern Europe's cities were significantly more polluted than their Western European counterparts. An unintended consequence of communism's decline is to improve urban environmental quality. This paper uses several new data sets to measure these gains. National level data are used to document the extent of convergence across nations in sulfur dioxide and carbon dioxide emissions. Based on a panel data set from the Czech Republic, Hungary and Poland, ambient sulfur dioxide levels have fallen both because of composition and technique effects. The incidence of this local public good improvement is analyzed.
Time-Consistent Policy and Politics: Does Voting Matter When Individuals Are Identical?
Authors: Anderberg Dan , Perroni Carlo 
Published: December 2005

Abstract
We consider the implications of a lack of policy commitment when policies are chosen through a political process and individuals are ex-ante identical. We show that politics, by allowing ex-post distributional tensions to shape policy, can make it possible to sustain non-trivial equilibria in which the commitment problem is alleviated or fully eliminated. How effective politics can be at countering collective commitment problems in homogeneous groups depends on the nature of the political process and on the extent to which private choices are public information.
Preventive Health Care and Payment Systems
Authors: Barros Pedro P , Martinez-Giralt Xavier 
Published: December 2005

Abstract
Prevention has been a main issue of recent policy orientations in health care. This renews the interest on how different organizational designs and the definition of payment schemes to providers may affect the incentives to provide preventive health care.
We focus on the externality resulting from referral decisions from primary to acute care providers. This makes our analysis complementary to most works in the literature allowing to address in a more direct way the issue of preventive health care. The analysis is performed through a series of examples combining different payment schemes at the primary care center and hospital. When hospitals are reimbursed according to costs, prevention efforts are unlikely to occur. However, under a capitation payment for the primary care center and prospective budget for the hospital, prevention efforts increase when shifting from an independent to an integrated management. Also, from a normative standpoint, optimal payment schemes are simpler under joint management.
Do Unbundling Policies Discourage CLEC Facilities-Based Investment
Authors: Crandall Robert W. , Ingraham Allan T , Singer Hal J 
Published: December 2005

Abstract
An expanding economics literature has examined the theoretical linkages between mandatory unbundling in the telecommunications sector and the incentives to invest in facilities by both incumbent local carriers and competitive carriers. Recent empirical evidence that substantiates the theory has emerged. That literature documents CLECs’ reluctance to make facilities-based investments instead of availing themselves of incumbents’ UNEs at low regulated prices that are based on total element long-run incremental costs (TELRIC). By examining the variation in facilities-based investment in loops across U.S. states and over time, we find that facilities-based line growth relative to UNE growth was faster in states where the cost of UNEs was higher relative to the cost of facilities-based investment.
Pouring Money Down the Drain? How Sunk Investments and Signing Bonuses can Improve Employee Incentives
Authors: Arya Anil , Frimor Hans , Mittendorf Brian 
Published: December 2005

Abstract
A common explanation for why firms incur sunk costs is that technology considerations make them inescapable. This paper shows that sometimes firms may prefer to make early (less informed) investment decisions even when technology allows such decisions to be delayed. Sunk costs commit and clarify a firm's future course of action to prospective employees, thereby providing them with incentives to acquire firm-specific human capital. This benefit of sunk costs may also provide justification for offering employee signing bonuses.
Political Feasibility of Pension Reforms
Authors: Uebelmesser Silke 
Published: December 2005

Abstract
The impending demographic crisis calls for fundamental reforms of old-age security. In a democracy, however, reforms require the support of the majority. A reform that aims at reducing the size of unfunded pension systems is supported by the young and opposed by the old. As long as the young have the majority, this reform is feasible; as soon as society becomes a gerontocracy, there is risk of further expansion.
We determine for Germany, France and Italy the latest point in time at which a majority is in favour of a reform. For this, we calculate for each year the “indifference age” as the age of the cohort that is not affected by the reform and the “median age” as the age of the politically decisive cohort. In Germany, a reform can be democratically enforced until 2012. France becomes a gerontocracy in 2014 and Italy as early as 2006.
Franchise Bidding for Postal Services in Rural Regions
Authors: Borrmann Jörg 
Published: December 2005

Abstract
In this paper, we develop a franchise bidding mechanism for postal services under the Universal Service Obligation (USO) in rural areas. For the collection and delivery of mail on rural routes and for small town counter operations, monopoly franchises are awarded. Deficits caused by the USO are balanced by transfers between the government and the incumbent postal operator, i.e. the franchiser. We analyze the efficiency properties of the mechanism and discuss the drawbacks when extending the mechanism to urban areas.
Federal Tax Benefits for Child Care: Progressivity Over Time, EGTRRA, and the Alternative Minimum Tax
Authors: Eiler John R , Hrung Warren B. 
Published: December 2005

Abstract
This paper examines the progressivity of tax benefits for child care over time. We find that the Child and Dependent Care Tax Credit (CDCTC) became more progressive between 1989 and 1998. However, total tax benefits for child care, which include the employer exclusion for child care, were less progressive than the CDCTC alone and became less progressive over time. In simple simulations using 1998 data as the base, we find that the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) increases the progressivity of the CDCTC and total tax benefits for child care.
Estimating Productivity When Primal and Dual TFP Accounting Fail: An Illustration Using Singapore's Industries
Authors: Kee Hiau Looi 
Published: December 2005

Abstract
For both primal and dual TFP growth accounting to properly account for productivity growth, assumptions of constant returns to scale and perfect competition are necessary. This paper shows that without these assumptions, while both TFP growth accounting measures remain equal if factor shares are constant, they are also equally bad at measuring productivity growth. This paper proposes a structural regression to estimate productivity growth based on more general production and cost functions. Using Singapore's industries as illustrations, this paper finds that the assumptions are widely rejected, and the estimated productivity growth exceeds both the accounting measures. When the same methodology is applied to the aggregate Singapore data, the estimated productivity growth is 4.4 percent per year, significantly higher than that of Young's (1992) and Hsieh's (2002).
Foreign Portfolio Investment Improves Performance: Evidence from the Czech Republic
Authors: Weiss Andrew , Nikitin Georgiy A 
Published: December 2005

Abstract
When foreigners became the major shareholders of publicly traded firms in the Czech Republic, those firms experienced improvements in performance and increases in investment. In contrast, controlling for ownership type, ownership concentration had no independent effect on performance or investment. The results are robust to the estimation technique used, the choice of independent variables, and the methods used to control for selection bias.
Toll Competition Among Congested Roads
Authors: Engel Eduardo M , Fischer Ronald , Galetovic Alexander 
Published: December 2005

Abstract
Roads are being franchised to private firms in many countries, raising the issue of regulating the tolls they charge. When there is more than one road to get from one point to another, regulation need not be necessary, since competition may substitute for toll regulation. This paper studies toll competition among private asymmetric roads subject to congestion. We obtain two main results. First, in equilibrium tolls are higher than optimal, that is, there is too little congestion. This happens because road owners internalize the reduction in drivers’ willingness to pay due to congestion, thereby softening competition. It follows that the drawback of private competition is exercise of market power, not excessive congestion as is sometimes conjectured. Second, the distortion becomes smaller as market size and the number of roads grow, even if the density of drivers does not change. In the limit tolls converge to the socially optimal level and are just enough to make each driver internalize the congestion externality. This suggests that the scope for competition is better in larger networks.
Intranational Trade Diversion, the Canada-United States Free Trade Agreement, and the L Curve
Authors: Coulombe Serge 
Published: December 2005

Abstract
This paper provides an empirical analysis of the comparative evolution of intranational and international trade in the Canadian provinces since 1981. We establish a striking empirical fact, the L curve, that characterizes the comparative evolution of intranational (interprovincial) and international trade shares to GDP between 1981 and 2000. We also use a panel data model to evaluate the impact of changing trade costs induced by the CUSFTA on the intensity of international and interprovincial trade. The analysis casts doubt on the intranational trade diversion hypothesis, common in trade models such as the structural gravity model of Anderson and van Wincoop (2003) that was used recently to revisit the Canada–U.S. border effect. International trade appears to complement rather than substitute for interprovincial trade.
HIV Testing: a Trojan Horse?
Authors: Mechoulan Stéphane 
Published: December 2005

Abstract
The consequences of HIV testing are unclear. Some infected individuals, assuming they behave selfishly, would tend to increase their number of partners. Meanwhile, non-infected ones or those ignorant of their status would decrease theirs, the result of which, on the equilibrium level of infection, is uncertain. Simulations from a simple dynamic model show how to generate the Philipson-Posner conjecture, i.e., that disclosure of HIV status may result in higher disease prevalence. In this benchmark case, testing would also lower welfare. Those results, however, appear to be fragile. In particular, very little altruism seems needed for testing to become beneficial, and the public health literature tells us that a large proportion of individuals behave altruistically when tested positive and appropriately counseled. Beyond the mere availability of testing, the findings further suggest combining existing prevention measures with universal or mandatory testing to help eradicate the disease.
An Empirical Analysis of Gambling Addiction: Results from the Case of Taiwan
Authors: Chang Wen-Chun 
Published: December 2005

Abstract
This study analyzes gambling addiction in Taiwan by using lottery data from 1978 to 1984. Two main conclusions can be drawn from the empirical evidence of this study. First, lottery play is strongly addictive in Taiwan, and the results are consistent with the theory of rational addiction. Second, the estimated short-run and long-run price elasticities are -0.136, and -1.463, respectively. Because consumers are very likely rational, the concerns of public policy toward gambling should focus on the negative externalities rather than on its addictive nature.