Narrow Results

This study examines the effects of a fertility subsidy that was instituted in specific regions in Korea in 2004. The value of the subsidy ranged from $4000 to $9000 (2004 US$) depending on the area of residence. Using a difference-in-differences estimation strategy, we measure the effects of the policy on childbearing and migration in and out of the subsidized areas. Our estimates for migration suggest that the policy significantly increased the net inflow of females into the subsidized areas. This effect is driven roughly equally by a decrease in the outflow from and an increase into the subsidized areas. Our estimated effects on fertility are in line with previous results from the literature; we find that a $1000 increase in fertility subsidies leads to a 0.108% increase in the chance of bearing a child for all age groups (21 to 45). Our results show that the policy increased total births in 2005 by 11,000 and that the vast majority of this increase was from the 21 to 33 cohort.

There is a global decline in marine fish abundance due to unsustainable harvesting. An effective harvesting policy can protect the overfished population from possible extinction. In this study, we used a mathematical model characterized by density-dependent refuge protection for herbivorous fish, exhibiting an anti-predator response in presence of a generalist invasive fish. The anti-predator behavior entails predator density-dependent reduced fecundity of the herbivorous fish. The model assumes a continuous threshold harvesting policy (CTHP) for the herbivorous fish and uses the catch-per-unit-effort (CPUE) hypothesis for harvesting the invasive fish. The CTHP allows harvesting of the herbivorous fish only when the density of the herbivorous fish exceeds a specified threshold value, thus ensuring the long-term sustainability of the herbivorous fish stock. The existence and stability of steady-state solutions and the bifurcations of the model are investigated. Our study reveals that the level of apprehension of the herbivorous fish and fishing efforts will play a significant role in the stability of the system. We examine the existence of the bionomic equilibrium and then study the dynamic optimization of the harvesting policy by employing Pontryagin’s maximum principle. We discuss different subsidies and tax policies for the effective management of a sustainable fishery. We use numerical simulations to compare the revenues corresponding to the harvest policies based on maximum sustainable yield (MSY), maximum economic yield (MEY), and optimal sustainable yield (OSY) for inferring an ecologically sustainable and economically viable harvesting policy.

In the case where recycled production inputs are perfect technical substitutes for virgin inputs and the carbon emissions on a LCA basis associated with recycled inputs are lower, a revenue-neutral combination of a tax and subsidy can reduce GHG associated with the production process.

Government fiscal policy can be said to be pro-poor if it benefits the poor more than the nonpoor. This research, by using the concept of social welfare, identifies which goods and services should be subsidized or taxed to maximize social welfare. For this purpose, the concept of the elasticity of the Atkinson social welfare with respect to prices is used to derive a price reform index to assess indirect taxes and subsidies. The results of this research, conducted in Iran's urban and rural areas during 2003–2007, indicate that increasing the price of food items hurts the poor more than the rich. Subsidizing food items (excluding beverages and tobacco) has been pro-poor while an increase in the price of items like healthcare, transportation, communication and education hurt the rich more than the poor wherein the rich benefit more from subsidies to these items than the poor. In light of these results, a review of subsidies and taxes on the above-mentioned items is warranted to reduce inequality and improve welfare.

For decades, Boeing and Airbus have struggled for dominance in the large commercial aircraft market. In 2010 and 2011, the World Trade Organization ruled that each firm has received illegal subsidies from the governments of the United States and the European Union, which have enhanced their competitive positions. This paper considers the nature of these rulings and the future competitive environment in the global jetliner industry.

We examine the consequences of foreign direct investment (FDI) policies in a general equilibrium setting with several oligopolistic industries. By shifting labor demand across countries, FDI raises the wage in the host country and lowers the wage in the source country, thereby raising profits of source country firms at the expense of host country firms. The extent of cross-ownership of firms, the relative number of firms and the relative supply of skilled labor alter the impact of FDI policy on national welfare. The tension between profits and wages determines whether the optimal policy is designed to encourage FDI.