Jing Jing Liu, Norlida Hanim Mohd Salleh, Nor Ghani Md Nor
{"title":"The economy-wide impact of cooking oil subsidy reforms and compensation to the oil palm industry","authors":"Jing Jing Liu, Norlida Hanim Mohd Salleh, Nor Ghani Md Nor","doi":"10.1016/j.jpolmod.2024.05.008","DOIUrl":"10.1016/j.jpolmod.2024.05.008","url":null,"abstract":"<div><div><span><span>This study analyses the economy-wide impact of cooking oil subsidy reforms using two simulations: complete subsidy removal and compensation for the oil palm industry. The study focuses on </span>macroeconomic variables<span>, industrial output, and employment. A Computable General Equilibrium model<span> is used for analysis. The study found that complete subsidy removal leads to negative impacts on the macroeconomy, causing a slight decrease in economic growth. It also results in negative impacts on industrial output and employment. On the other hand, reallocating the revenue to the oil palm industry investment could mitigate these adverse effects, and further leads to an increase in economic growth. The reallocation improves the output of the oil palm industry and reduces its </span></span></span>labour demand<span>. The impacts on other industries' output and employment vary. Removing cooking oil subsidy can be a viable option because of its marginal impacts. It's also recommended to compensate the oil palm industry, especially independent smallholders.</span></div></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"46 6","pages":"Pages 1228-1242"},"PeriodicalIF":3.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141134190","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Labour supply responses to a negative income tax in Spain","authors":"Amadeo Fuenmayor, Rafael Granell, Teresa Savall","doi":"10.1016/j.jpolmod.2024.02.007","DOIUrl":"10.1016/j.jpolmod.2024.02.007","url":null,"abstract":"<div><div>One of the major drawbacks of a Basic Income proposal is that it could induce people to reduce their labour supply. The main aim of this paper is to put forward a financially viable alternative to the current Spanish system of social protection, based on a Negative Income Tax proposal and introducing several changes in the social protection system. Using EUROMOD, the labour behavioural responses to these new conditions are studied in detail, using a structural model of labour supply.</div><div>The main result is that a reform as the one described in this work will not make people to abandon the labour market, as usually argued for Basic Income proposals. Under this scheme, on the contrary, we can observe a slightly increase in labour supply. This finding has strong implications for policy. Modifying the tax-benefit system, bringing it closer to a Basic Income scheme, will produce significant improvements in inequality and poverty without a significant change in labour supply.</div></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"46 6","pages":"Pages 1274-1287"},"PeriodicalIF":3.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140576947","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Emerta Aragie, Xinshen Diao, David J. Spielman, James Thurlow
{"title":"The economywide recovery measures in Rwanda during the COVID-19 pandemic: How useful a lesson?","authors":"Emerta Aragie, Xinshen Diao, David J. Spielman, James Thurlow","doi":"10.1016/j.jpolmod.2024.07.004","DOIUrl":"10.1016/j.jpolmod.2024.07.004","url":null,"abstract":"<div><div>In response to the COVID-19 pandemic, governments in many low- and middle-income countries (LMICs) immediately introduced strict public health measures to contain the spread of infection. The economic consequences of these measures were negative and often large in magnitude, necessitating the rapid introduction of economic relief and recovery measures to reinvigorate economic growth and safeguard affected households. Rwanda stands out among other LMICs both for its effective public health policy response and its adaptive economic policy response to COVID-19. Using a dynamic computable general equilibrium (CGE) model of Rwanda, this paper assesses the economywide and welfare impacts of these policy measures and contextualizes results within the overall policy response to COVID-19. Modeling results generated at an early stage of Rwanda’s pandemic experience indicated that relief and recovery measures introduced in 2020 could mitigate COVID-19′s recessionary effects by about 0.8 % points of total GDP, help to recover about 115,000 jobs and, through cash transfers, significantly reduce income losses among poorer households, with total benefits from the measures exceeded their cost by a ratio of 2.2. These results demonstrate the widely replicable value of economywide modeling when used in a timely manner and when positioned within a policymaking process.</div></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"46 6","pages":"Pages 1103-1124"},"PeriodicalIF":3.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141943901","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Health and growth in China: Greater investment in both soft- and hard-ware are needed","authors":"Fu Shuyong, Chen Shuyu, Zhai Jinlong","doi":"10.1016/j.jpolmod.2024.02.006","DOIUrl":"10.1016/j.jpolmod.2024.02.006","url":null,"abstract":"<div><div><span><span>The purpose is to study the relationship between health investment and economic growth in China. The research design involves empirical research using semi parametric regression models and instrumental variable<span> methods. The results indicate that on the one hand, Chinese health investment can promote economic growth, and its promoting effect on economic growth is non-linear; On the other hand, healthcare investment in the form of human capital is more conducive to promoting </span></span>regional economic growth than healthcare investment in the form of material capital. The conclusion is that it is necessary to increase health investment in the form of human capital such as the number of </span>health personnel in the eastern region, as well as in the form of material capital such as the number of beds in the central and western regions, in order to better promote regional economic growth.</div></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"46 6","pages":"Pages 1263-1273"},"PeriodicalIF":3.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140399532","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Fiscal stance role for ECB monetary policy","authors":"Linas Jurkšas , Francisco Gomes Pereira","doi":"10.1016/j.jpolmod.2024.06.008","DOIUrl":"10.1016/j.jpolmod.2024.06.008","url":null,"abstract":"<div><div>The objective of this paper is to ascertain the presence of a crucial connection between euro area fiscal stance and ECB monetary policy. To achieve this, we employ the thick modelling approach for the Generalised method of moments to estimate ECB reaction functions with and without a projected fiscal deficit indicator from 2001 until 2022. The results reveal that the actions of the ECB have exhibited desirable effects of stabilising monetary policy, while the projected fiscal deficit was usually not statistically significant in explaining the ECB’s monetary policy stance. However, the sign of fiscal deficit coefficient was positive, implying a counter-cyclical nature of monetary policy with respect to the fiscal stance. This effect has become more evident since 2012, suggesting that the ECB might be taking into account euro area fiscal deficits as providing some indications for potential inflationary risks. Overall, these findings speak against the fiscal dominance or repression regime being prevalent in the euro area.</div></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"46 6","pages":"Pages 1210-1227"},"PeriodicalIF":3.5,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141883858","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Harmonizing economic and environmental costs in the CAP to improve efficiency and effectiveness of policies","authors":"","doi":"10.1016/j.jpolmod.2024.05.011","DOIUrl":"10.1016/j.jpolmod.2024.05.011","url":null,"abstract":"<div><p>The recent CAP aims at better targeting beneficiaries and being more selective in its objectives. This has drawn attention to how policies interact with resources used by farms in terms of both economic and environmental costs. Conditional Process Models under Structural Equation Modeling framework may offer statistical indications on these complex interactions. The proposed model, called SMIRNE, is applied to an Italian macro-area at severe risk of land pollution (Pianura Padana) caused by livestock sector. Results show a more substantial support from pillar I policies than those provided by pillar II in addressing a relevant response of policies to the economic and environmental costs of the livestock activities with reference to the use of land.</p></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"46 5","pages":"Pages 1055-1069"},"PeriodicalIF":3.5,"publicationDate":"2024-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0161893824000607/pdfft?md5=a67d7421c0478fc235eed74a45a79685&pid=1-s2.0-S0161893824000607-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141389704","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"How do carbon prices spill over along global supply chains? The impact on Europe and Germany","authors":"","doi":"10.1016/j.jpolmod.2024.03.005","DOIUrl":"10.1016/j.jpolmod.2024.03.005","url":null,"abstract":"<div><p>This paper uses a multisector, multiregional general equilibrium input-output model to study the spillovers of global carbon pricing to Germany and Europe. It uses the World Input-Output Database (WIOD) to calibrate the intersectoral trade between seven regions and 56 economic sectors per region as well as EXIOBASE’s sectoral accounts of greenhouse gas emissions to calibrate emission costs. We find that moving from European-only to global carbon prices does neither reduce nor increase the aggregate GDP loss for Germany or Europe as a whole. However, this masks a large degree of heterogeneity across sectors. Sectors that rely on foreign sectors, which are themselves sensitive to the transition, experience large negative spillovers from global carbon pricing. Other sectors, even those with a high emission or trade intensity, tend to benefit from global carbon pricing due to an improvement in international competitiveness.</p></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"46 5","pages":"Pages 887-907"},"PeriodicalIF":3.5,"publicationDate":"2024-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0161893824000322/pdfft?md5=5696e171a1e68ab74ba6ef647fc32716&pid=1-s2.0-S0161893824000322-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140576932","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Immigration and the distribution of income, consumption and wealth in the euro area: Implications for economic policies","authors":"","doi":"10.1016/j.jpolmod.2024.02.005","DOIUrl":"10.1016/j.jpolmod.2024.02.005","url":null,"abstract":"<div><p>We use representative data from household surveys in the euro area to describe differences in wages, income, consumption, wealth<span> and liquid assets between households born in their country of residence (“natives”) and those born in other EU and non-EU countries (“immigrants”). The differences in wealth<span> and liquid assets are more substantial than the differences in wages, income and consumption: immigrants earn on average about 30% lower wages than natives and hold roughly 60% less net wealth. For all variables, only a small fraction of differences between natives and immigrants—around 30%—can be explained by differences in demographics (age, gender, marital status, education, occupation, sector of employment). Immigrants are more likely to be liquidity constrained: while we classify 17% of natives as “hand-to-mouth” (they hold liquid assets worth less than two weeks of their income), the corresponding share is 20% for households born in another EU country and 29% for those born outside the EU. Employment rates of immigrants are substantially more sensitive to fluctuations in aggregate employment. We discuss the implications of these findings for economic policies, including monetary, fiscal and pre-distribution policies.</span></span></p></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"46 5","pages":"Pages 867-886"},"PeriodicalIF":3.5,"publicationDate":"2024-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139921013","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Is bribery a conscious, strategic and rational choice? Impact on firms’ growth in India","authors":"","doi":"10.1016/j.jpolmod.2024.06.001","DOIUrl":"10.1016/j.jpolmod.2024.06.001","url":null,"abstract":"<div><p>This study, utilising data from the World Bank Enterprise<span> Survey, probes the diverse effects of bribery on the growth of firms in India. The central question we ask is: what motivates certain firms to engage in bribery while others abstain? Employing the endogenous switching regression model, we aim to uncover the intricacies of this heterogeneity. Our findings suggest that bribery can facilitate growth, yet there is substantial heterogeneity in its impact on firms. The impact varies across firm groups: it positively influences those engaging in bribery, while non-bribers would have experienced adverse effects if they had engaged in bribery. Thus, we observe that firms’ decision to dis(engage) in bribery is influenced by the returns they derive from such a decision. This suggests that firms’ decision to (dis)engage in bribery is a conscious, strategic and rational one, driven by choice rather than coercion.</span></p></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"46 5","pages":"Pages 1000-1019"},"PeriodicalIF":3.5,"publicationDate":"2024-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141553083","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Fed and ECB reaction functions during quantitative easing: Three phases of monetary policy, both conventional and unconventional","authors":"","doi":"10.1016/j.jpolmod.2024.03.003","DOIUrl":"10.1016/j.jpolmod.2024.03.003","url":null,"abstract":"<div><p><span>Studying monetary authority response to macroeconomic<span><span> imbalances using the interest rate as a proxy variable for monetary policy became ineffective after the financial crisis, when central banks exhausted the effective capacity of interest rates by reaching the </span>zero lower bound (ZLB). In an effort to analyse the unconventional response deployed by central banks, we present and estimate a modified reaction function that uses money supply as the operational instrument of monetary policy for the Federal Reserve and the </span></span>European Central Bank, and we verify its utility as an explanatory instrument for the behaviour of the two monetary authorities. By applying our strategy, it is feasible to identify both monetary policy reaction with regard to the economic situation as well as other possible monetary authority concerns regarding governments’ fiscal behaviour and the evolution of asset markets, regardless of the monetary policy applied at any given time.</p></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"46 5","pages":"Pages 928-945"},"PeriodicalIF":3.5,"publicationDate":"2024-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140280705","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}