Search results for "deadweight"
showing 10 items of 10 documents
A General Equilibrium Analysis of Climate Change Impacts on Tourism
2004
This paper studies the economic implications of climate-change-induced variations in tourism demand, using a world CGE model. The model is first re-calibrated at some future years, obtaining hypothetical benchmark equilibria, which are subsequently perturbed by shocks, simulating the effects of climate change. We portray the impact of climate change on tourism by means of two sets of shocks, occurring simultaneously. The first shocks translate predicted variations in tourist flows into changes of consumption preferences for domestically produced goods. The second shocks reallocate income across world regions, simulating the effect of higher or lower tourists' expenditure. Our analysis highl…
An Assessment of Carousel Value-Added Tax Fraud in The European Carbon Market
2017
AbstractThe literature on the European Union Emission Trading System (EU ETS) is by now very rich. Much is known about the efficiency, the effectiveness, and the environmental and distributional impacts of the EU ETS. Less, however, is known about the carousel value-added-tax (VAT) fraud phenomena in the European carbon market. This article evaluates the welfare effects of carousel VAT fraud in the EU ETS using a computable general equilibrium (CGE) analysis. According to our findings, if VAT fraud occurs in the EU ETS, the effects on welfare for the EU Member States are negative, with welfare loss significantly higher than the VAT fraud value. This article also discusses the reverse charge…
A general equilibrium analysis of climate change impacts on tourism
2006
This paper studies the economic implications of climate-change-induced variations in tourism demand, using a world CGE model. The model is first re-calibrated at some future years, obtaining hypothetical benchmark equilibria, which are subsequently perturbed by shocks, simulating the effects of climate change. We portray the impact of climate change on tourism by means of two sets of shocks, occurring simultaneously. The first set of shocks translate predicted variations in tourist flows into changes of consumption preferences for domestically produced goods. The second set reallocate income across world regions, simulating the effect of higher or lower tourists' expenditure. Our analysis h…
The welfare cost of unpriced heterogeneity in insurance markets
2016
We consider the welfare loss of unpriced heterogeneity in insurance markets, which results when private information or regulatory constraints prevent insurance companies to set premiums reflecting expected costs. We propose a methodology which uses survey data to measure this welfare loss. After identifying some “types” which determine expected risk and insurance demand, we derive the key factors defining the demand and cost functions in each market induced by these unobservable types. These are used to quantify the efficiency costs of unpriced heterogeneity. We apply our methods to the US Long-Term Care and Medigap insurance markets, where we find that unpriced heterogeneity causes substan…
Measuring welfare loss of market power: an application to European banks
2004
From a model of imperfect competition among banking firms, this study derives an analytical expression that allows empirical quantification of the welfare loss associated with imperfect competition. Its application to the specific case of the European banking system shows that in spite of the process of deregulation, market power increased during the 1990s in 10 out of the 15 countries of the EU. The welfare loss associated with market power represents close to 2.5% of EU GDP.
2019
Pre-industrial money supply typically consisted of multiple, often foreign currencies. Standard economic theory implies that this entails welfare loss due to transaction costs imposed by currency exchange. Through a study of novel data on Finnish nineteenth-century parish-level currency conditions, we show that individual currencies had principal areas of circulation, with extensive co-circulation restricted to the boundary regions in between. We show that trade networks, defined here through the regional co-movement of grain prices, proved crucial in determining the currency used. Market institutions and standard price mechanisms had an apparent role in the spread of different currencies a…
Evaluating Project Deadweight Measures: Evidence from Finnish Business Subsidies
2009
An important problem in measuring the impacts of business subsidies is their separation from deadweight, which refers to changes that would have occurred even in the absence of intervention. Both public and private assessments have been used previously to study deadweigh, but so far little is known about how they correspond to each other. To address this issue we conducted a joint evaluation of the private and public assessments of deadweight for Finnish business projects. A unique dataset combines large register data with both public and private information on projects financed in 2000–03. First, our results suggest that the different measures for deadweight are greatly uncorrelated, and …
Evaluation of Deadweight Spending in Regional Enterprise Financing
2012
Tokila A. and Haapanen M. Evaluation of deadweight spending in regional enterprise financing, Regional Studies. The problem of deadweight spending has been previously studied using diverse methods. However, regional variations in deadweight spending have not yet been considered. An evaluation of regional business subsidies in Finland during 2000–2003 is conducted. The analysis reveals regional differences in deadweight spending in proportional and, particularly, in monetary terms. Deadweight spending is dependent on many firm-, project- and regional-level factors, which also largely account for regional differences. However, there seems to be some regional variation in deadweight spending t…
Evaluation of investment subsidies - When is deadweight effect zero?
2008
In the evaluation of investment subsidies one of the critical issues concerns the assessment of deadweight, that is, the degree to which projects would have been carried out without grant assistance. With the increasing restrictions on and cuts in subsidies for investment projects in the EU countries maximisation of the impact of the public resources that remain can be achieved through their allocation for projects with minimum deadweight. This paper studies the profile of subsidised zero deadweight investment projects – projects that would be abandoned without public subsidies – in Finland. The empirical analysis is conducted using micro level data on investment projects by private sector …