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Measuring Households' Vulnerability to Idiosyncratic and Covariate Shocks – the case of Bangladesh

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Author Info

  • Tatsuyoshi Miyakoshi

    (Faculty of Science & Engineering, Hosei University, Japan)

  • Laixun Zhao

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

Abstract

This paper examines multinational public goods provision under multilateral income transfers and productivity differences across countries. We assume the existence of a planner who uses linear approximation for utility maximization for all countries. The main findings are: (i) A country is an income receiver if it has an advantage in producing public goods; (ii) the planner country can determine the values of transfers for all countries with an adjustment cost; (iii) all countries obtain an identical level of utility; (iv) the country with the lowest adjustment cost is the best candidate for the planner country. All results are derived based on well-known information regarding the cost of producing the public goods and on income levels.

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File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2012-19.pdf
File Function: First version, 2012
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Bibliographic Info

Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number DP2012-19.

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Length: 18 pages
Date of creation: Jul 2012
Date of revision:
Handle: RePEc:kob:dpaper:dp2012-19

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Related research

Keywords: International public goods; Multilateral income transfers; Productivity difference; Planner; Adjustment cost; Welfare;

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  1. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
  2. Ihori, Toshihiro, 1996. "International public goods and contribution productivity differentials," Journal of Public Economics, Elsevier, vol. 61(1), pages 139-154, July.
  3. Bergstrom, Ted C. & Blume, Larry & Varian, Hal, 1992. "Uniqueness of Nash equilibrium in private provision of public goods : An improved proof," Journal of Public Economics, Elsevier, vol. 49(3), pages 391-392, December.
  4. Caplan, Arthur J. & Cornes, Richard C. & Silva, Emilson C. D., 2000. "Pure public goods and income redistribution in a federation with decentralized leadership and imperfect labor mobility," Journal of Public Economics, Elsevier, vol. 77(2), pages 265-284, August.
  5. Flachsland, Christian & Marschinski, Robert & Edenhofer, Ottmar, 2009. "Global trading versus linking: Architectures for international emissions trading," Energy Policy, Elsevier, vol. 37(5), pages 1637-1647, May.
  6. Jin Kim & Shim, Seungjin, 2006. "Incentive mechanisms for international public goods under uncertainty of production costs," Economics Letters, Elsevier, vol. 92(3), pages 311-316, September.
  7. Tatsuyoshi Miyakoshi, 2008. "A Planner of Global Income Transfers: International Public Goods and Productivity Differentials," DEGIT Conference Papers c013_019, DEGIT, Dynamics, Economic Growth, and International Trade.
  8. Warr, Peter G., 1983. "The private provision of a public good is independent of the distribution of income," Economics Letters, Elsevier, vol. 13(2-3), pages 207-211.
  9. Richard Cornes & Jun-Ichi Itaya, 2010. "On the Private Provision of Two or More Public Goods," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(2), pages 363-385, 04.
  10. Rosendahl, Knut Einar, 2008. "Incentives and prices in an emissions trading scheme with updating," Journal of Environmental Economics and Management, Elsevier, vol. 56(1), pages 69-82, July.
  11. Richard Cornes & Roger Hartley, 2003. "Aggregative Public Goods Games," NajEcon Working Paper Reviews 666156000000000063, www.najecon.org.
  12. Tatsuyoshi Miyakoshi, 2008. "A Planner of Global Income Transfers: International Public Goods and Productivity Differentials," Discussion Papers in Economics and Business 08-38, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
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