A Planner of Global Income Transfers: International Public Goods and Productivity Differentials
AbstractThe purpose of this paper, by introducing the adjustment expense of global income transfers across N countries, is to produce an explicit rule for the planner country regarding income transfers, and to investigate the effects of income transfers on each countryfs welfare. The findings are: (i) when country i has a productive advantage in producing public goods, country i becomes an income receiver; (ii) specifying the particular level of the adjustment expense for global income transfers, the planner can decide the values of income transfers for all countries; (iii) even though any country can become a planner of income transfers, all countries get the same utility level, while the low adjustment expense under a particular planner country leads to a Pareto-improving outcome; (iv) all conclusions are derived based on well-known information regarding the cost of producing public goods and income levels for all countries.
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Bibliographic InfoPaper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 08-38.
Length: 16 pages
Date of creation: Dec 2008
Date of revision:
international public goods; productivity differentials; planner; global income transfer; adjustment expense; welfare;
Find related papers by JEL classification:
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-01-03 (All new papers)
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