Hokkaido Institute of Public Health, Sapporo 060-0819; 1School of Veterinary Medicine, Rakuno Gakuen University, Ebetsu 069-8501; 2Sorachi Public Health and Social Welfare Office, Iwamizawa 068-8558; 3Kamikawa Public Health and Social Welfare Office, Asahikawa 079-8610; 4Iburi Public Health and Social Welfare Office, Muroran 051-8555; 5Department of Health and Welfare, Hokkaido Government, Sapp...

We explore the welfare implications of several …scal policies in an estimated two-country New Open Economy Macroeconomics (NOEM) model of the European Monetary Union (EMU). The model features incomplete …nancial markets, home bias in …nal consumption baskets and in input utilization. We …rstly de…ne the optimal policy. In addition to the optimal provision of public goods, the optimal policy inv...

This paper performs a welfare analysis of economies with private information when public information is endogenously generated and agents can condition on noisy public statistics in the rational expectations tradition. Equilibrium is not (restricted) efficient even when feasible allocations share similar properties to the market context (e.g., linear in information). The reason is that the mark...

This contribution deals firstly with the differences between market action and government action, and then explores the justification for government intervention based on concepts of economic efficiency and equity. The chapter then proceeds to discuss individual cases in which unregulated private market outcomes are generally considered to violate this criterion.

Welfare economics provides the basis for judging the achievements of markets and policy makers in allocating resources. Its most powerful conceptual tool is the utility possibility frontier. This defines the set of utility allocations that can be achieved in a society subject to the constraints of tastes and technologies. Any allocation on the frontier cannot be Pareto dominated and hence would...