Note that, when η = 0, ci is simply the expected income of i. We then calculate the inequality-neutral certainty-equivalent income loss. To do this, we find the equalpercentage loss that, if forfeited by all agents with certainty, yields the same welfare as the actual crosssectional distribution of certainty equivalent losses ci . Denoting the inequality-neutral certainty-equivalent income loss...

Under the Agreement on Trade-Related Intellectual Property Rights, the World Trade Organization members are required to enforce product patents for pharmaceuticals. In this paper we empirically investigate the welfare effects of this requirement on developing countries using data for the fluoroquinolones subsegment of the systemic anti-bacterials segment of the Indian pharmaceuticals market. Ou...

This study examines the consumer welfare impact of animal welfare legislation mandating cage-free egg production in California. We estimate California egg consumers’ willingness to pay (WTP) for cage-free eggs using household-level purchase data and compare the implied premium to higher production costs when calculating the potential change in consumer surplus. Our findings suggest that larger ...

All farm animals will experience some level of stress during their lives. Stress reduces the fitness of an animal, which can be expressed through failure to achieve production performance standards, or through disease and death. Stress in farm animals can also have detrimental effects on the quality of food products. However, although a common assumption of a potential effect of stress on food ...

Many studies show that asymmetric information exists in insurance markets, yet there is little consensus on the e↵ectiveness of interventions in these markets. This article provides empirical evidence that improving information about risk is not always welfare-improving. I show how the theoretical e↵ect of risk-rating can depend on whether the market is adverselyor advantageously-selected. I th...

In the framework of a search and matching model, when search effort enters the labor market matching function, search effort by one worker generates a negative externality on other workers searching for jobs. The solution to the social planner’s problem may not be decentralized in a competitive market. Calibration shows that the current US unemployment insurance (UI) system generates an 8.07% w...

We assess recent Chinese climate policy proposals in a multi‐region, multi‐sector computable general equilibrium model with a Chinese carbon emissions trading scheme (ETS). When the emissions intensity per GDP in 2020 is required to be 45% lower than in 2005, the model simulations indicate that the climate policy‐ induced welfare loss in 2020, measured as the level of GD...

Today’s welfare system does not encourage postsecondary education, focusing instead on services aimed at immediate employment. The loss of postsecondary education as a route out of poverty for welfare recipients may be detrimental to some women. College graduation is associated with lower rates of return to aid and post-welfare poverty than attendance without graduation or no attendance. Howeve...

This paper studies the causes, mechanisms and consequences of decreasing firm value and welfare loss in an economy under a fixed exchange rate regime when there is an unexpected appreciation in domestic currency. We also study the possible economic crisis caused by the exchange rate shock. We consider the established production capacity as well as the training of firmspecific labors before prod...

Loss Leading pricing is often referred to as an advertising strategy which allows retailers to attract consumers by subsidizing some products and make profits from other items; in this way, below-cost pricing may improve consumer welfare by compensating consumers for their lack of information. This paper shows that large retailers can instead use loss leading as an exploitative device at the de...