{"title":"Legalizing Harmful Drugs: Government Participation and Optimal policies.","authors":"Luis Rodrigo Arnabal Rocca","doi":"10.1515/bejeap-2021-0309","DOIUrl":"https://doi.org/10.1515/bejeap-2021-0309","url":null,"abstract":"<p><p>We are currently witnessing a shift in the approach to combat traffic and consumption of illegal harmful drugs, being cannabis legalization a prominent example. In this paper, we study how to optimally regulate the market for cannabis, in a setting where consumers differ in their utility from consumption of the psychoactive component of cannabis, THC, and suffer from misperception of the health damage it causes. We analyze this problem through a vertical differentiation model, where a black market firm and a public firm compete in prices and qualities (THC content). A paternalistic government would like to correct for the misperceived health damage caused by cannabis consumption, as well as to reduce the size of the black market. It is the undesirability of black market profits what explains that the first-best allocation cannot be decentralized. We find two possible equilibria, depending on whether the public firm serves those consumers with the highest or lowest willingness to pay for quality. Paradoxically, when the public firm serves those consumers with higher taste for THC, a lower average health damage is achieved together with a better economic result for the public firm.</p>","PeriodicalId":47400,"journal":{"name":"B E Journal of Economic Analysis & Policy","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9851772/pdf/bejeap-23-1-bejeap-2021-0309.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"9194251","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Corporate Social Responsibility and Wage Inequality","authors":"P. Jiancai, Zhao Runzhi","doi":"10.1515/BEJEAP-2019-0235","DOIUrl":"https://doi.org/10.1515/BEJEAP-2019-0235","url":null,"abstract":"This paper analyzes how corporate social responsibility (CSR) generates an impact on wage inequality. We find that wage inequality decreases (resp. increases) with the degree of CSR when the substitution elasticity between unskilled labor and capital in the production of the urban sector is sufficiently small (resp. large).","PeriodicalId":47400,"journal":{"name":"B E Journal of Economic Analysis & Policy","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2020-07-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81281902","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Gender and Educational Variations in the Earnings Premiums of Occupational Credentials","authors":"Kim Jeounghee, Chatterji Sangeeta","doi":"10.1515/BEJEAP-2019-0187","DOIUrl":"https://doi.org/10.1515/BEJEAP-2019-0187","url":null,"abstract":"Occupational credentials such as professional licenses and certifications are known to generate significant earnings premiums. Based on this, the federal workforce development policy focuses on industry-recognized occupational credentials for less-educated adults to help them obtain family-supporting jobs without having to invest in a postsecondary degree. This study used data from the 2016–2019 Current Population Survey (CPS) outgoing rotation group samples to examine differences in the earnings premiums associated with occupational credentials by gender and education. Our analyses revealed that the earnings premium of job-required credential holding was greater for women than men. For women, estimates of the earnings premiums do not vary much by education level, while for men, those without a Bachelor's degree tend to have high premiums than those without.","PeriodicalId":47400,"journal":{"name":"B E Journal of Economic Analysis & Policy","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2020-04-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74605949","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Consequences of the 1959-1961 Chinese Famine for Educational Attainment.","authors":"Margaret J Lay, Johannes Norling","doi":"10.1515/bejeap-2019-0112","DOIUrl":"10.1515/bejeap-2019-0112","url":null,"abstract":"<p><p>This paper finds that the Great Chinese Famine of 1959-1961 reduced lifetime educational attainment by up to 3.8 years for people who lived in areas most severely hit by the famine. Using geographical variation in famine intensity, information about place of residence during the famine, and educational attainment recorded in the China Health and Retirement Longitudinal Study, the paper demonstrates that the decline in educational attainment was particularly sharp for women. This decline interrupted substantial gains in schooling achieved in China during the middle part of the twentieth century.</p>","PeriodicalId":47400,"journal":{"name":"B E Journal of Economic Analysis & Policy","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2020-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7743912/pdf/nihms-1577451.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"38393907","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Personal or Partisan Incumbency Advantage? Evidence from an Electoral Reform at the Local Level in Italy","authors":"M. D. Benedetto","doi":"10.1515/BEJEAP-2018-0125","DOIUrl":"https://doi.org/10.1515/BEJEAP-2018-0125","url":null,"abstract":"","PeriodicalId":47400,"journal":{"name":"B E Journal of Economic Analysis & Policy","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2019-11-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78058535","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Endogenous Equity Shares in Cournot Competition: Welfare Analysis and Policy","authors":"Kanjilal Kiriti, M. Félix","doi":"10.1515/BEJEAP-2018-0085","DOIUrl":"https://doi.org/10.1515/BEJEAP-2018-0085","url":null,"abstract":"We consider a duopoly in which firms can strategically choose equity shares on their rival’s profits before competing in quantities. We identify equilibrium equity shares, and subsequently compare them against the optimal equity shares that maximize social welfare. Most previous studies assume that equity shares are exogenous, and those allowing for endogenous shares do not evaluate if equilibrium shares are socially excessive or insufficient. Our results also help us identify taxes on equity acquisition that induce firms to produce a socially optimal output without the need to directly tax output levels.","PeriodicalId":47400,"journal":{"name":"B E Journal of Economic Analysis & Policy","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2019-10-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74912704","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Optimal Disability Insurance with Informal Child Care","authors":"Ho Christine","doi":"10.1515/BEJEAP-2018-0082","DOIUrl":"https://doi.org/10.1515/BEJEAP-2018-0082","url":null,"abstract":"The possibility of engaging in household child care may exacerbate the incentives of parents and grandparents to falsely claim disability benefits as households also get to save on formal child care costs. This paper considers a multi-generational family model with persistence in privately observed shocks and presents an efficient implementation case for subsidizing formal child care costs of the disabled. An implementation of the optimal scheme that consists of capped formal day care subsidies, non-linear income taxation and asset-testing is proposed. Simulations based on a parametrization that targets key features of the US labor and child care markets suggest that day care subsidies may lead to sizeable cost savings.","PeriodicalId":47400,"journal":{"name":"B E Journal of Economic Analysis & Policy","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2019-04-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81451184","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A. Massimiliano, Garofalo Antonio, Cerciello Massimiliano
{"title":"Do Local Institutions Affect Labour Market Participation? The Italian Case","authors":"A. Massimiliano, Garofalo Antonio, Cerciello Massimiliano","doi":"10.1515/BEJEAP-2018-0077","DOIUrl":"https://doi.org/10.1515/BEJEAP-2018-0077","url":null,"abstract":"Italy features very low labour market participation rates for both men and women, coupled with a sizeable participation gender gap. This work investigates empirically the relation between institutional quality and labour market participation at the local level. Using official records on the Italian provinces over the 2004–2012 timespan and the Institutional Quality Index, we use a Spatial Lag of X model to gauge the direct and indirect impact of local institutions on male and female participation rates, with particular regard to the participation gender gap. The results support the idea that institutional quality has a significant impact on local labour market participation, for both men and women, while it does not affect the participation gap. Moreover, institutions generate spatial spillovers, affecting participation in neighbouring provinces. Finally, the availability of public child care facilities is as a key determinant of female participation.","PeriodicalId":47400,"journal":{"name":"B E Journal of Economic Analysis & Policy","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2019-04-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80199705","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Do Firms Supported by Credit Guarantee Schemes Report Better Financial Results 2 Years After the End of Intervention","authors":"D. Ondřej, Čadil Jan, Mirošník Karel","doi":"10.1515/BEJEAP-2018-0057","DOIUrl":"https://doi.org/10.1515/BEJEAP-2018-0057","url":null,"abstract":"The study contributes to underdeveloped knowledge on effects of SME policies in Central and Eastern Europe. We evaluate two Czech credit guarantee schemes funded from EU funds during years 2007–2013. We conduct micro-econometric firm-level impact evaluation based on propensity score matching approach. We estimate average treatment effect on the treated (ATET) for six financial outcome variables (total assets, tangible fixed assets, personnel costs, sales, price-cost-margin and return on assets) measuring firm´s competitiveness. Two years after the programme, no statistically conclusive results were obtained for the most of the outcome variables. We found only a positive change in tangible fixed assets for the programme participants. However, we cannot say, that the supported firms would be better off, compared to those non-supported in a short-term. Our analysis shows that without reliable data gathered by public sector authorities, no rigorous evaluations can be made and thus no evidence driven policies can be formed.","PeriodicalId":47400,"journal":{"name":"B E Journal of Economic Analysis & Policy","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2019-01-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87582558","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Terrorism and Firm Performance: Empirical Evidence from Pakistan","authors":"Mazhar Ummad","doi":"10.1515/BEJEAP-2018-0041","DOIUrl":"https://doi.org/10.1515/BEJEAP-2018-0041","url":null,"abstract":"A secure business environment for private enterprises is desired by all states and is endorsed as a part of United Nation’s sustainable development goals. However, the risk exposure of private enterprises against terrorism, particularly in developing countries, is not adequately studied. Using Enterprise Surveys (ES) data for more than 2000 firms located across the four provinces of Pakistan, this paper studies the link between the risk of terrorism and firm performance. It finds, after controlling for various firm specific performance determinants as well as provincial and sector specific heterogeneities, that terrorism has a significant negative effect on firms’ performance which is independent of firm size. This effect is robust against different specifications and estimation methods including instrumental variables strategy. Beyond much explored aggregate consequences, terrorism has direct consequences for production processes at micro level.","PeriodicalId":47400,"journal":{"name":"B E Journal of Economic Analysis & Policy","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2019-01-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76738140","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}