In the aftermath of the financial and economic crisis, central banks worldwide reduced their pol. These measure price movements in capital assets, such as company share prices, at the time policy changes are first announced. It is commonly agreed that economic policies, including budgetary policies, can have potentially strong distributional effects. Central bankers became recently aware of the effects of monetary policy on distribution. Theoretical, institutional and empirical analyses are combined to form a comprehensive framework for evaluating financial sustainability and distributional effects of the pension systems implemented in germany and the united kingdom. Distributional effects of globalization in developing. International economics krugman and obstfeld solution. What we do now can have only a limited effect on the climate over the next 40 or 50 years.
Distributional effects of air pollution from electric. Browse the amazon editors picks for the best books of 2019, featuring our. In contrast, the theoretical and empirical literature investigating the distributional effects of monetary policy is relatively new. It also helps the longrun poor even absent any explicit redistribution mechanism. Matching, sorting, and the distributional effects of international trade.
Two approaches can be used to account for distributional effects. Of all published articles, the following were the most read within the past 12 months. This paper quantitatively assesses distributional effects of monetary policy. Using data on currently registered electric vehicles, we find that people in census block groups with median.
We quantify the distributional effects of trade shocks in the u. When distributional implications are taken into account, the stimulative effect of the policy increases, because households that gain on net have a high propensity to consume relative to those that lose. A project has a directprofit redistribution effect and a directcost redistribution effect. Distributional effect an overview sciencedirect topics. An economic analysis of global impacts, adaptation and distributional effects new. While economic instruments are often seen as being particularly regressive. And be sure to congratulate ntas outstanding dissertation prize.
Distributional effects of vehicle pollution control policies 4. Some of that literature looks at distributional effects of environmental or energy taxes used to help control pollution or energy consumption. There have been important political consequences of this overselling, including the undermining of confidence in the elites that advocated globalization. On july 1st, 2001 the norwegian government reduced the vat on all food items from 24 to 12 percent, while the vat on other goods did not change. The book includes an interesting analysis of the major strands to adaptation literature, the models to be used and the understanding of agricultural systems in many parts of our planet. According to robins, economics is a science which studies human behaviour as a relationship between ends and scarce means which have alter. This book focuses on the distributional consequences of the public sector and examines and documents, theoretically and empirically, the effects of government spending and taxation on personal distribution, and includes chapters investigating the relationship between the public sector and functional distribution of national income. American journal of agricultural economics, volume 73, issue 2. Evidence from new york city authors and affiliations. We develop models of bribery that reflect the fact that, in developing countries, anticorruption enforcement is not unbiased, and higher income of a. Distribution economics in economics, distribution is the way total output, income, or wealth is distributed among individuals or among the factors of production such as labour, land, and capital.
Using examples from different economic and social contexts, the book explains macromicro linkages in an easy and intuitive way. Distributional consequences typically receive limited attention in economic models that analyze the effects of monetary and financial. Social securitys privatization can considerably raise longrun living standards. Distributional effects of globalization in developing countries. Paris school of economics, paris 1 pantheonsorbonne. One of the effects of inflation on the economy is the income distribution effect of inflation. Economics and inequality harvard university press, 2017, and his work has appeared in the industrial and. Nov 14, 2018 such intrusive policies will likely have substantial side effects, including distributional effects. This is true particularly for structural policies and for fiscal measures, which often have an explicit redistributive aspect.
Economic, social and environmental impacts further increase vulnerability to disasters and tend to set back development, destroy livelihoods, and increase disparity nationally and worldwide. This paper investigates the distributional consequences of international. The updated biden tax plan adds two major provisions that significantly affect the budgetary and. Recently, policy debate and comparative research on oldage pensions have focused on the financial sustainability of pension systems in the face of demographic change. Dominic parker is a professor of economics at university of wisconsin, madison, and a senior fellow at perc.
To provide training in frontier econometric methods, and the application of these. The distributional effects of government spending and taxation pp 202243. Ceq wp24 measuring the distributional impact of taxation. This paper is part of the nbers research programs in public economics pe. Distributional effects of a school voucher program. While the economics profession has long been aware that these issues matter,their effects had been incorporated into macro models only to a very limited extent prior to the. First, it raises the price of fossilfuelintensive products that constitute a high fraction of lowincome budgets like gasoline, heating fuel and electricity. A tourismcge model representative of the indonesian economy is developed based on modified version of the indonesian sam 1993, for analysing the economic effects and distributional implications. This book addresses the distributional impacts associated with environmental. The distributional effects of education expenditures michael l. One use of national accounts is for classifying factor incomes and measuring their respective shares, as. The updated biden tax plan adds two major provisions that. Distributional effects of personal income taxation in korea. A distributional effect is the effect of the redistribution of the final gains and costs derived from.
Tim maull, in handbook of environmental economics, 2003. In theory, the indirect profit and indirect costs can also be derived from the redistr. The approach captures the broad consequences of programs, taking into account their direct and indirect effects through price changes, interpersonal transfers, demonstration effects, and the like. A distributional effect is the effect of the redistribution of the final gains and costs derived from the direct gains and cost allocations of a project. The distributional effects of fiscal austerity laurence ball, davide furceri, daniel leigh, and prakash loungani i. International economics krugman and obstfeld solution manual. A new body of literature considers the effects of monetary policy through the revaluation of private debt in the context of dynamic stochastic general equilibrium dsge models. Distributional effects of taxing transport fuel thomas sternera,b,n a department of economics, go. The distributional effects of government spending and. Distributional effects of crop insurance subsidies applied. Even if one limits the analysis to tariffs, measurement concerns remain.
In the context and aftermath of the financial crisis, however, the distributional. The distributional effects of government spending shocks. Regarding the longterm distributional consequences of trade reform. Distributional effects of a continuous treatment with an. This article considered the economic effects of the removal of subsidized premiums for crop insurance. It is a prekeynesian thought of economics that was given by lionel robins in his book essays on the nature and significance of the economic science 1932. Distributional effects of alternative vehicle pollution. While many empirical methods may be used see joskow and rose 1989 and regulation. This book seeks to broaden the literature by discussing the impacts of a wide range of policy. The distributional effects of climate policies bruegel. I claimed in the book that, in the absence of a more concerted government response, too much globalization would deepen societal cleavages, exacerbate distributional problems, and undermine domestic social bargains arguments that have become conventional wisdom since.
Former vice president joe biden has recently proposed a new tax plan as part of his presidential campaign. The distributional effects of globalization in developing countries article pdf available in journal of economic literature 451. Oecd ilibrary the distributional effects of consumption. The distributional effects of conventional monetary policy. His paper examined the distributional effects of conservation easements, focusing on the tax policies that incentivize landowners to donate easements to land trusts. Advanced econometrics i economics 245a course goals. Hoynes labor supply theory predicts systematic heterogeneity in the impact of recent welfare. However, when the model is adapted to include distributional effects, the economy grows, even in the.
Distributional macroeconomics princeton university. But the book by mendelsohn and dinar offers many other insights to science and policy. Distributional effects of household linkages american. An econometric model estimates power plant emissions and an integrated assessment model values damages in air pollution from electric and gasoline vehicles. Concern over the distributional effects of policies which induce changes in peer group structure, or associational redistributions durlauf, 1996c, motivates a substantial body of theoretical and empirical research in economics, sociology, psychology, and education. The longrun gains to social securitys privatization are greater due to the. Distributional effects of macroeconomic policy choices in emerging. Traditional economic analysis held that economic policies affected the income distribution primarily through their impact on the rate of growth.
The remainder of this article is organized as follows. Abstract this paper considers the effect of a continuous treatment on the entire distribution of outcomes after adjusting for differences in the distribution of covariates across different levels o. This book focuses on the distributional consequences of the public sector and examines and documents, theoretically and empirically, the effects of government spending and taxation on personal distribution, and includes chapters investigating the relationship between the public sector and. Pdf the distributional effects of globalization in.
In his monumental book, thomas piketty 2014 points to the big drops in top tax rates, particularly in the united states and great britain since 1980. Take time to introduce yourself to new nta attendees and join in the receptions each evening. Distributional effects of monetary policy matthias doepke northwestern martin schneider stanford veronika selezneva northwestern february 2015 abstract we assess the distributional consequences of monetary policy in the current economic environment in the united states. Distributional effects of globalization in this memo, i am going to discuss the effects of globalization on the distribution of income. Any big change in federal reserve monetary policy creates winners and losers in the u. Distributional effects of monetary policy deutsche bundesbank. The new law that reduced the vat on food items was passed byparliamentstortingetondecember7th,2000.
Presidential candidate and former vice president joe bidens campaign recently released more details regarding his tax plan. Article information, pdf download for the distributional effects of education. But whether it is profit or cost, the redistribution effect can be expressed as a benefit to a group of people or department or region, and the loss to another party. Distributional consequences typically receive limited attention in economic models that analyze the effects of monetary and. Empirical analysis, asset market event studies have been particularly popular. In effect, it is giving to households with one hand what it is taking away with the other. We discuss recent empirical research on how globalization has affected income inequality in developing countries. The gains to gdp or growth were overestimated, and the costs, including adverse distributional effects, were underestimated. Thea sinclair, adam blake christel dehaan tourism and travel research institute university of nottingham business school, jubilee campus, nottingham ng1 1bb, uk. Distributional effects of environmental and energy policy. Thomas pickettys book capital in the twentyfirst century has transformed our economic discourse. While the term globalization encompasses the various economic, political, cultural and social aspects of the many different types of international integration such as trade, capital mobility, labor migration. We begin with a discussion of conceptual issues regarding the measurement of globalization and inequality. A quantitative trade model links these channels to compositional differences in expenditures and earnings across household groups.
Pwbms analysis of a previous version of the plan is available here. Distributional consequences of trade world trade organization. Climate change tends to increase the frequency and intensity of weatherrelated disasters, which puts many people at risk. Have economists been honest enough about trade, asks dani. The vertical and horizontal distributive effects of energy taxes. Distributional effects in a general equilibrium analysis. With such low incomes, they are unable to attain a minimal standard of living, as gauged by access to adequate food, clothing, shelter, clean water, sanitation facilities, education, and. This chapter utilizes a computable general equilibrium model to analyze how the shift to an investmentbased system would change wages and interest rates. In economics, distribution is the way total output, income, or wealth is distributed among individuals or among the factors of production such as labour, land, and capital. These consequences deserve more attention since financial markets are incomplete, imperfect, and economic agents access to them is often limited. Sacred economics 5 charles eisenstein introduction the purpose of this book is to make money and human economy as sacred as everything else in the universe. Abstractwe examine distributional effects of changes in local air pollution from driving electric vehicles in the united states.
It draws upon insights from environmental economics, welfare economics, public economics and political philosophy. Introduction financial crises are not only typically associated with sharp. Next, we present empirical evidence on the evolution of globalization and inequality in several developing countries during the 1980s and 1990s. The report examines the distributional effects of valueadded tax vat and excise tax systems in 20 oecd countries, and investigates the effectiveness of reduced vat rates as a redistributional tool. In many models of corruption where enforcement is unbiased and the official maximizes her income, the rich are more likely to pay bribes for their childrens education, implying that corruption reduces educational inequality. Simulating distributional impacts of macrodynamics. The authors discuss recent empirical research on how globalization has affected. This publication is a milestone in the analysis of the distributional impacts of environmental policy, building upon existing literature to simultaneously examine disparities in the distribution of environmental impacts and in the distribution of financial effects amongst households. The literature has investigated the effect of monetary policy on aggregate economic variables, including total output, employment, and inflation, widely and for many decades. Journal of health economics vol 71, in progress may 2020. The benefits of strong, early action on climate change outweigh the costs the effects of our actions now on future changes in the climate have long lead times.
Penner department of education, university of california, irvine. Modeling the macroeconomic effects of a universal basic income. Using a model that links production of individual crops with nine retail food categories, we are able to trace the effects of these policies to producers and consumers in different us states. In general theory and the national income and product accounts, each unit of output corresponds to a unit of income. Distributional effects of a carbon tax in the context of. Distributional effects of globalization in developing countries, journal of economic literature, american economic association, vol. Effect and unequal income tax treatment, the economic journal 104 423.
Distributional effects of air pollution from electric vehicle. Many effects of environmental and energy policy are likely to disproportionately burden those with low income. Distributional effects of macroeconomic policy choices in. It looks at the impact of climate change on agriculture and provides a good. Papadimitriou the distributional effects of government. Dec 14, 2012 distributional effects of a carbon tax in broader u.
Distributional effects of corruption when enforcement is. Distributional consequences typically receive limited attention in economic models that analyze the effects of monetary and financial sector policies. Tax evasion and distributional effects, meeting room 5 tax expenditures in developing economies, meeting room 9 noon 1. Distributional effects of monetary policy european central bank. At the same time, states have taken steps to increase their minimum wages above the federal minimum, motivated in part by these concerns and supported by research showing that the decline in the real value of the minimum wage in recent. Received 10 december 2009 accepted 3 march 2010 available online 31 march 2010 jel classi. Distributional effects of economic growth oxford scholarship. This study, however, also takes into account distributional effects involved in pension system structures. In order to address these issues, the first section chapters 1, 2 and 3 of the book develops the theoretical framework for the analysis of the distributional impacts of environmental policy. This article focuses on the implementation of fiscal incidence analysis using the accounting approach.
Energy taxes, distributional effects, fuel poverty, demand system, microsimulation. Empirical studies of political economy generally begin with estimates of the distributional effects of a given policy. Once consumers are assigned different distributional weights, it is possible for policy changes with efficiency losses to raise social welfare by improving the distribution of income. Distributional effects of welfare reform experiments by marianne p.
The biden tax plan contains ten specific proposals, united around the common theme of raising taxes on capital income. Distributional effects of monetary policy brookings. Today we associate money with the profane, and for good reason. The economic effects and distributional implications. Pdf the economic effects and distributional implications. Iam glad to now see a greater emphasis on the possible macroeconomic consequences of heterogeneity 3rd generation. Social affairs the distributional effects of fiscal austerity.
128 596 152 1497 691 1554 1217 904 614 1042 193 643 1413 733 1638 1434 247 1305 422 913 895 96 930 770 1239 708 550 301 708 1153 780 457