We formulate an overlapping generations model with skill heterogeneity and productive and non-productive government programs to study the macroeconomic and intergenerational welfare effects caused by risk premium shocks and government debt reductions. We demonstrate that in a small open economy with a high level of debt-to-GDP ratio a small increase in the risk premium leads to substantial outp...

U.S. welfare reforms will add one to two million persons to the labor force from 19932005. Because this increase in labor supply is only about one percent of the U.S. labor force, it is unlikely that welfare reform will have sizable effects on overall U.S. wages or unemployment. However, a variety of economic models suggest that welfare reform will significantly reduce the real earnings of some...

Welfare Effects of the Euro Cash Changeover Using merged data from the British Household Panel Survey (BHPS) and the German SocioEconomic Panel (SOEP), this paper applies a parametric difference-in-differences approach to assess the real effects of the introduction of the euro on subjective well-being. A complementary nonparametric approach is also used to analyze the impact of difficulties wit...

Using a two-bloc endogenous growth model calibrated to two generic sending and receiving countries of equal size, we assess the growth and welfare impact of world migration flows of different skill compositions. The sending country (East) has a lower total factor productivity and a lower endowment of skilled labour. Migration can induce two growth-enhancing effects: an efficiency effect from th...

as an industrial crop, sugar beet plays an important role in meeting domestic demand for sugar. given the higher level of imported sugar iniran, the application of protectionist policies is an approach for supplying required sugar. one of these policies is technological improvement. in order to study the effect of this policy, sugar beet supply and demand equations in 1971-2008 were fitted by t...

Within a two-sector-two-country model of trade with aggregate scale economies and unionisation, a more generous welfare state in one country increases welfare in that country and can have positive spillover effects on the other. Furthermore, synchronised expansions of social security are more welfare enhancing than unilateral ones. Our results counter the fears that a race to the bottom in soci...

In Germany politics and consumers ask for the implementation of more animal welfare. So far there are no bio economic models available to calculate animal welfare measures on the farm management level. Experiments on animal welfare often result in limited data for farm management analysis. In this article the economic effects of measures for animal welfare using stochastic simulations are analy...

Critics of current tying doctrine argue that metering ties can increase consumer welfare and total welfare without increasing output and that they generally increase both welfare measures. Contrary to those claims, we prove that metering ties always lower both consumer welfare and total welfare unless they increase capital good output. We further show that under market conditions we argue are r...

this paper evaluates the welfare effects of price changes in the main commodity groups in iran. using the iranian urban households’ data issued by the iranian statistics center over the period 1994-2007 we estimate the subsistence level. in addition, using the results from the linear expenditure system we calculate the price and income elasticities along with the compensation and equivalent var...

The paper tries to estimate the welfare loss due to early revelation of relevant information about individual risk (the ’Hirschleifer effect’) in the case of predictive medicine. Using CRRA preferences with the range of ∗I received useful comments from Georges Dionne, an anonymous referee and the workshop participants. Errors are mine. Financial support from the NSF (Grant No. 0096516) is grate...