Air pollution is one of the leading causes of death worldwide, especially affecting poorer people who tend to be more exposed and vulnerable. This study contributes (i) updated global exposure estimates for the World Health Organizations's 2021 revised fine particulate matter (PM2.5) thresholds,...

Background: Multiple Sclerosis (MS) is a chronic debilitating disease that imposes a heavy socioeconomic burden on societies. This study aimed to determine the economic burden of MS on patients using the first (CinnoVex and ReciGen) and second (Fingolimod and Natalizumab) drug therapy lines....

A formula is derived for the social cost of carbon (SCC) that takes account of intragenerational income inequality and its evolution with economic growth. The social discount rate (SDR) should be adjusted to account for intragenerational and intergenerational inequality aversion and for risk...

Air pollution is one of the leading causes of death worldwide, especially affecting poorer people who tend to be more exposed and vulnerable. This study contributes (i) updated global exposure estimates for the World Health Organizations's 2021 revised fine particulate matter (PM2.5) thresholds,...

A large electricity outage is costly for households both directly and indirectly. The direct cost is the disutility from lacking electricity at home. The indirect cost is the disutility from lacking access to infrastructure services that depend on electricity, such as internet and mobile phones,...

Fragmenting clearing across multiple central counterparties (CCPs) is costly because globaldealers cannot net positions across CCPs. They have to collateralize both the short positionin one CCP and an offsetting long position in another CCP. This observation coupled with astructural net order...

Disagreements about normative aspects of social time preferences have led to estimates of the Social Cost of Carbon (SCC) that differ by orders of magnitude. We investigate how disagreements about the SCC change if planners are non-dogmatic, i.e., they admit the possibility of a change in their...

This paper provides new evidence showing that carbon transition risk is becoming increasingly material and is priced both in equity and debt markets. We find that there is a widespread price-earnings discount linked to corporate carbon emissions. This discount varies, however, by sector and...

With Toronto City Council due to discuss an increase in the land transfer tax (LTT) on highend homes at an upcoming meeting, this independent analysis of the impacts of such a move is intended to help inform the deliberations. In this E-Brief, we evaluate the economic cost of raising LTT...

The transition from artisanal to industrial production is an important step in economic development, but the impact on the artisanal workers remains poorly understood. In the latter half of the 19th century, technological advances in Swedish iron production initiated a wave of industrialization...

Previous analyses of the cost of redistribution by a unitary governmenthave focussed on the welfare losses of distorted labor supply choices. On theother hand, the analysis of redistribution b,y local qovernments in a federalsystem has emphasized the effect of the migration of taxpayers and...

Recent literature has highlighted the importance of new activities in development and growth. It was shown that trade distortions such as tariffs are associated with first-order costs stemming from the induced drop in the formation of new activities. This paper demonstrates that uncertainty may...

This study estimates the economic effects of nuclear weapons development efforts in Pakistan using synthetic control group methods. Pakistan started its nuclear weapons program in 1972 and conducted its first test in 1998. This paper focuses on the growth impacts during the 1973 to 1997 period,...

This paper constitutes the first effort to measure the welfare cost of economic cycles considering that the consumer derives utility from the consumption of nondurable goods and services, and the stock of durable goods. We simply apply Lucas' 1987 approach to each consumption category but also...

An address to the Ōtara community, delivered on 5 May 2010. The address provides an overview of the Law Commission’s review of New Zealand’s liquor laws. It discusses a range of issues identified during consultation with the Ōtara community, including the density of alcohol outlets in...

We quantify the welfare cost of depression among older Americans by estimating a panel VAR model of mental and physical health, labor supply, and consumption using data from the Health and Retirement Study. We use the estimated model and age sixty joint distribution of outcomes to simulate...

We provide the first direct estimates of distribution expenses incurred by manufacturing plants and assess their importance for aggregate output. Using a novel measure from the Indian Annual Survey of Industries, we document three key facts: (1) distribution expenses are large – they amount to...

This paper examines the welfare effects of informational intermediation. A (shortlived) seller sets the price of a product that is sold through a (long-lived) informational intermediary. The intermediary can disclose information about the product to consumers, earns a fixed percentage of the...

Between the 1940s and 1970s, Spain used a variety of economic policies that hindered international trade. Because the mix of tariffs, quotas, administrative barriers, and exchange rate regimes varied greatly over time, the quantification of the effect of the various trade policies on...

This paper analyzes the welfare costs related to changes in monetary policy and trend inflation in the Postwar U.S. economy. We use a medium-scale New Keynesian DSGE model and find the following results. First, changes in monetary policy and trend inflation play an essential role in reducing...

Purpose: Air pollution and its adverse health effects result in an economic cost to society. Given that the burden of disease from air pollution is to a large extent preventable, estimation of the magnitude of its economic cost is important. We estimate the economic cost of the health impact...

This paper introduces a new economic simulator in the case of a war, this new economic simulator is entitled “The Post-War Economic Impact Simulator (PEI-Simulator).” The PEI-Simulator assesses the economic impacts of countries thorough the possible scenario of a partial or full war in three...

The main tenet of the New Keynesian (NK) paradigm is that price dispersion caused by nominal price stickiness is the primary source of allocative inefficiency. This study empirically evaluates the welfare implications of NK models by observing how internal and external price dispersion responds...

According to the existing open-economy macroeconomics literature, a current account surplus is associated with a welfare loss only when distortions exist in either savings or investment, and bilateral imbalances do not matter when holding a country's overall imbalance constant. We propose a new...

How can we measure the welfare benefit of ongoing stabilization policies? We develop a methodology to calculate the welfare cost of business cycles taking into account that observed consumption is partially smoothed. We propose a decomposition that disentangles consumption in a mix of...

We estimate the effects on employment and wages of wrongful-discharge protections in the United States. Over the last three decades, most U.S. state courts have adopted one or more common law wrongful discharge doctrines that limit employers' discretion to terminate workers at-will. Using this...

This paper investigates the economic costs of the recent United Nations sanctions on North Korea. Exploiting a novel data set on North Korean firms, we construct measures of regional exposure to export and intermediate input sanctions and show that they cause sharp declines in local nighttime...

Recent studies on shifting trend inflation use the Standard New Keynesian model with Calvo price settingto address welfare issues. Within this framework, the transmission mechanism gets mainly through pricedispersion as an inefficient source of distortion in the output. As a result, firms have...

Bangladesh Government is in the final stage of setting up one nuclear power plant with two units at Rooppur, Ishwardi, each having 1200 MW capacity, to be launched in 2023 to meet the energy shortage urgently. The financial cost of the project is US $12.65 billion. The primary purpose of this...

Using a general equilibrium model of the United States economy,we examine the combined welfare cost of all taxes in the U.S. revenue system.We find that the welfare losses caused by distortionary taxation can be very large, both on average and at the margin.The marginal welfare loss to consumers...

Birth weight has emerged as the leading indicator of infant health and welfare and the central focus of infant health policy. This is because low birth weight (LBW) infants experience severe health and developmental difficulties that can impose enormous costs on society. But would the prevention...

This paper studies a model in which a low monetary policy rate lowers the cost of capital for entrepreneurs, potentially spurring productive investment. Low interest rates, however, also induce entrepreneurs to lever up so as to increase payouts to equity. Whereas such leveraged payouts...

A commonplace claim about international trade is that it “has losers” – a claim often taken to imply that the case for a policy of free trade rests upon the assumption that trade’s “winners” will compensate its “losers.” In this paper I argue that this claim is mistaken. The...

This paper analyzes a nominal anchor exchange rate policy as a domestic distortion, in the tradition of international trade theory. It is shown that, in addition to the problems of sustainability and exit pinpointed in the exchange rate literature, a nominal anchor exchange rate policy, while in...

In 2021, the United Nations Committee on Development Policy adopted a resolution that Bangladesh would graduate from least developed country (LDC) status after a period of 5 years. This means that in 2026 Bangladesh would have to forego its exemption to intellectual property (IP) provisions of...

Energy system and power market models refrain from distinguishing between private and social discount rates. We devise a strategy to account for diverging private and social discount rates in intertemporal optimization frameworks, resulting in an optimal carbon tax above the marginal damage when...

Current decarbonization policies neglect damages from local air pollutants. We analyze the trade-off between complementary taxation of carbon emissions and local air pollution. We quantify results for the European power market until 2050. Taxing only air pollution results in social cost of 5,890...

Net-zero climate policies foresee deployment of atmospheric carbon dioxide removal wit geo-logical, terrestrial, or marine carbon storage. While terrestrial and geological storage would be governed under the framework of national property rights, marine storage implies that carbon is transferred...

The paper provides an overview of studies on the social and private costs of retail payments conducted since 2013 in nine EU countries and collates the results obtained. Social costs of retail payments are the overall costs resulting from providing payment services to society and deriving from...

Carbon pricing is a key instrument for achieving Europe's ambitious climate targets. It is therefore not surprising that reform of the EU carbon market is at the heart of the measures proposed by the European Commission (EC). One important policy innovation would be the introduction of a second...

Mit dem Warentransport sind zahlreiche negative externe Effekte verbunden. Aufgrund eines Marktversagens werden zu viele Güter über weite Strecken transportiert. Maßnahmen zur Internalisierung, wie die Einführung von Auflagen, Verboten sowie Steuern, Abgaben und handelbaren Zertifikaten,...

This paper explores one of normative economic theory’s most nagging omissions: its failure to model the welfare effects of advertising and other forms of marketing – central features of all modern market economies. Technically, the paper relaxes the standard welfarist assumption that...