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A three- sector calibrated simulation model is used to examine the welfare effects of an increase in quantitative trade restrictions when production in some sectors is characterized by increasing returns to scale.
The welfare gains Korea would realize from abolishing the tariffs and equivalent import restraints prevailing in 1982 are likely to be substantial.
This in-depth study of health insurance schemes in Zaire recommends developing more pilot insurance systems in areas where health systems already function - and strengthening existing systems through training, exchange visits, information systems, and technical assistance. Implementing a nationwide health insurance system is not likely to be as successful as decentralized, locally managed plans.
Malawi's comprehensive reform of its tax system in the 1980s illustrates many of the issues that developing countries must address when altering the way they levy taxes.
Tariff reform for trade liberalization must be seen as part of a broader program of tax reform. Custom duties on imports should be geared chiefly to protection. Reductions in such duties to promote an outward- oriented development strategy should be offset by increases in sales/value- added taxes applied equally to imports and domestic production. That would maintain public revenues and avoid exacerbating macroeconomic dificulties.
No single revenue instrument can be assumed to be superior for mineral- dependent developing countries. And more than one instrument may be needed to meet a government's multiple objectives.
Policies affecting resource allocation across tradable sectors and those affecting the incentives to produce tradable activities are key determinants of macroeconomic balance and growth. Computable general equilibrium models have made significant contributions to both types of policies. With advancements in computing power and software, these models have become easy to implement and are now widespread. The question then is when and how to formulate them to avoid the ‘black box’ syndrome.This book seeks to address these issues through carefully selected essays that analyse how to model general equilibrium linkages in a single economy, across developing and developed economies, and across both micro and macro policies. Micro policies examined include tariffs quotas and VERs, the choice of taxes to maximize government revenue, migration and remittances, and the political economy of tariff setting. Applications on macro policies cover capital inflows, real exchange rate determination, and the modeling of the effects of adjustment policies on income distribution.The book provides insights on the development of a family of models for diverse policy choices, focusing on the ways to model the following: links between tradable and non-tradable activities, labor markets, and portfolio choices given limited capital mobility. Selected essays are all inspired by specific policy problems, including the adaptation to external shocks (i.e. oil), consequences of capital inflows, determinants of migration and associated remittances, the productivity of foreign aid, and rent-seeking activities under trade regimes with non-price trade restrictions. Examples in this book lay out the theoretical foundations, alongside a variety of applications, to help formulate coherent and transparent models for policy analysis. Archetype economies are extensively used to show how differences in economic structure influence the effects of policies. Graduate students and policy analysts interested in modeling will find this a useful compendium of studies.
Automotive air pollution will intensify with increasing urbanization and the rapid pace of motorization in developing countries. Without effective measures to curb air pollution, some 300-400 million city dwellers in developing countries will become exposed to unhealthy and dangerous levels of air pollution by the end of the century. Administratively simple policies that encourage clean fuels and better traffic management are the most promising approach to controlling vehicle pollutant emissions in developing countries.
First published in 1992. Routledge is an imprint of Taylor & Francis, an informa company.