This paper investigates analytically the welfare effects of black-market activities that firms undertake to evade taxes. The desirability of a black market is linked to the attributes of the goods supplied by blackmarket firms. The analysis identifies cases where a black market reduces (increases) the distortionary impact of taxation on the allocation of resources across the goods that the gove...

Traditional tools of welfare economics identify the envy-related welfare loss from conspicuous consumption only under very strong assumptions. Measured income and life satisfaction offers an alternative for estimating such consumption externalities. The approach is developed in the context of luxury car consumption (Ferraris and Porsches) in Switzerland. Results from household panel data and fi...

In an asset-pricing model calibrated to match the standard asset pricing empirical properties –in particular, the time-variation in the equity premium – we calculate the welfare (value) implications of sub-optimal capital budgeting decisions. Specifically, we calculate that an investment policy that ignores the timevariation in the equity premium, such as would occur with a cost of capital foll...

BACKGROUND Economic impact assessment of invasive species requires integration of information on pest entry, establishment and spread, valuation of assets at risk and market consequences at large spatial scales. Here we develop such a framework and demonstrate its application to the pinewood nematode, Bursaphelenchus xylophilus, which threatens the European forestry industry. The effect of spat...

The simultaneous multiple-round auction (SMRA) and the combinatorial clock auction (CCA) are the two primarymechanisms used to sell bandwidth. Under truthful bidding, the SMRA is known to output a Walrasian equilibrium that maximizes social welfare provided the bidder valuation functions satisfy the gross substitutes property [20]. Recently, it was shown that the combinatorial clock auction (CC...

We extend the model of Fullerton et al (2011) to explore cost-effectiveness of unilateral climate policy in the presence of leakage. We ignore the welfare gain from reducing greenhouse gas emissions and focus on the welfare cost of the emissions tax or permit scheme. Whereas that prior paper solves for changes in emissions quantities and finds that leakage maybe negative, we show here that all ...

Despite differences in focus, goals, and strategies between conservation biology and animal welfare, both are inextricably linked in many ways, and greater consideration of animal welfare, although important in its own right, also has considerable potential to contribute to conservation success. Nevertheless, animal welfare and animal ethics are not always considered explicitly within conservat...

The main objective of this research is to evaluate the social costs of monopoly in Iranian concentrated industries during 1996-2006. Leibenstein approach has been employed to evaluate the social costs. Leibenstein believed that most monopolistic industries operate inefficiently because of being in the safe margin. Hence, he proposed that the costs of inefficiency be added to the welfare triangl...

background and aims. tooth loss may lead to mastication disability, which in turn has important impact on individual’s quality of life. social and psychological factors have been shown to be associated with tooth loss. this study aimed to investigate the social determinants and prevalence of tooth loss, and presence of functional dentition among female heads of household under support of welfar...

the purpose of this paper is measuring and analyzing the impacts of meat price changes on consumer’s welfare. first, the almost ideal demand system (aids) was estimated for meats in urban household in 1984-2009 years. then, compensating variation (cv) criterion was computed to measuring the consumer’s welfare changes based on taylor series expansion method and the results from the estimated aid...