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

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  • Tatsuyoshi Miyakoshi

    (Osaka School of International Public Policy, Osaka University)

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 country fs 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.

Suggested Citation

  • 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.
    • Handle: RePEc:osk:wpaper:0838
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    File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/0838.pdf
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    References listed on IDEAS

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    1. 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 273-297.
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    6. Jun‐Ichi Itaya & David De Meza & Gareth D. Myles, 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 273-297, July.
    7. 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.
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    9. 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.
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    Cited by:

    1. Tatsuyoshi Miyakoshi & Laixun Zhao, 2012. "Multi-National Public Goods Provision under Multilateral Income Transfers & Productivity Differences," Discussion Paper Series DP2012-19, Research Institute for Economics & Business Administration, Kobe University.

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    More about this item

    Keywords

    international public goods; productivity differentials; planner; global income transfer; adjustment expense; welfare;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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