The Malaysian Government initiated domestic automobile production in 1985, paired with hefty tariffs on imported vehicles to protect the growing industry, using infant industry argument as underlying. To gain empirical knowledge effectiveness of for cases Japan, South Korea and Spain are briefly analysed. findings suggest that has failed implement type policies successfully. Additionally, welfa...

Does the social safety net improve welfare? Conventional wisdom says that means-tested social safety net programs improve welfare because they provide partial insurance against large negative shocks by guaranteeing a minimum consumption floor, but some economists have argued that they may also discourage labor supply and reduce capital accumulation. Furthermore, recent research suggests that th...

Are Lone Mothers Responsive to Policy Changes? Evidence from a Workfare Reform in a Generous Welfare State There is a heated debate in many European countries about a move towards a welfare system that increases the incentives for lone mothers to move off welfare and into work. We analyze the consequences of a major Norwegian workfare reform of the generous welfare system for lone mothers. Our ...

Workers who experience involuntary job loss suffer from deep and persistent negative consequences. In this paper, we first summarise the evidence on effects of displaced workers’ wellbeing. We conclude that displacement harms mental health economic security in short term negatively affects their earnings mortality risk long term. then extrapolate estimates Hyslop Townsend (2017) to estimate eco...

This paper provides an analytical characterization of the welfare effects of changes in cross-sectional wage dispersion, using a class of tractable heterogeneous-agent economies with various insurance market structures. We express welfare effects both in terms of changes in the observable joint distribution over individual wages, consumption and hours, and in terms of the underlying parameters ...

This paper analyzes the effects of ATM surcharges on deployment and welfare, in a model where banks compete for ATM and banking services. Foreign fees, surcharges and the interchange fee are endogenously determined. We find situations in which surcharges are welfare enhancing. Under strategic fee setting, the increase in deployment caused by surcharging might compensate the surplus loss caused ...

In the classical principal-agent problem, a principal hires an agent to perform a task. The principal cares about the task’s output but has no control over it. The agent can perform the task at different effort intensities, and that choice affects the task’s output. To provide an incentive to the agent to work hard and since his effort intensity cannot be observed, the principal ties the agent’...

This paper addresses the ongoing debate about the practice of disclosing information about software vulnerabilities through an open public forum. Using game-theoretic approach, we show that such practice may be an equilibrium strategy in a game played by rational loss-minimizing agents. We find that under certain parameters public disclosure of vulnerabilities is desirable from the social welfa...