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A Planner of Global Income Transfers: International Public Goods and Productivity Differentials

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  • Tatsuyoshi Miyakoshi

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    (Osaka School of International Public Policy, Osaka University)

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    Abstract

    The 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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    File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/0838.pdf
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    Bibliographic Info

    Paper 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.

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    Length: 16 pages
    Date of creation: Dec 2008
    Date of revision:
    Handle: RePEc:osk:wpaper:0838

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    Web page: http://www.econ.osaka-u.ac.jp/
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    Related research

    Keywords: international public goods; productivity differentials; planner; global income transfer; adjustment expense; welfare;

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    1. Ihori, Toshihiro, 1996. "International public goods and contribution productivity differentials," Journal of Public Economics, Elsevier, vol. 61(1), pages 139-154, July.
    2. 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.
    3. Itaya, Jun-ichi & de Meza, David & Myles, Gareth D, 2002. " Income Distribution, Taxation, and the Private Provision of Public Goods," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(3), pages 273-97.
    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. Boadway, Robin & Hayashi, Masayoshi, 1999. "Country size and the voluntary provision of international public goods," European Journal of Political Economy, Elsevier, vol. 15(4), pages 619-638, November.
    6. 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.
    7. 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.
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    Cited by:
    1. Tatsuyoshi Miyakoshi & Laixun Zhao, 2012. "Measuring Households' Vulnerability to Idiosyncratic and Covariate Shocks – the case of Bangladesh," Discussion Paper Series DP2012-19, Research Institute for Economics & Business Administration, Kobe University.

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