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| Sobhee, Sanjeev K.; Nath, Shyam. |
| This paper contributes to the literature on foreign aid by exclusively explaining a donor’s motivation for foreign external assistance. The underlying framework focuses on recipients’ needs for foreign aid to address income inequality as and when growth occurs. A tax-subsidy policy is hypothesised in the manner advocated by optimal tax theory to effectively deal with inequity by minimizing the distortionary effects of income taxes. This framework is ultimately endogeneized in the recipient’s budget constraint, from which the donor derives the demand for foreign assistance. The outcome supports an inverted-U relationship between foreign aid and per capita income in the way postulated by the conventional Kuznets curve. Our postulate is empirically tested... |
| Tipo: Journal Article |
Palavras-chave: Foreign aid; Optimal taxation; Fiscal policy; International Relations/Trade; F35; H21; E62. |
| Ano: 2007 |
URL: http://purl.umn.edu/50163 |
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| Ross, Matthias. |
| This paper extends an economic geography model by tariffs to analyze their impact on welfare and sustainability of agglomerations. Policies with and without cooperation are compared, with the goal of maximizing aggregated welfare in the former and regional welfare in the latter case. The main result is that under cooperation poorer regions are worse off in two respects. In the short-run they loose even more welfare and in the long-run sustainable agglomerations in richer regions get more likely. Thus, although cooperation could generate aggregated welfare gains the potential losers face even in the short-run no incentive to remove tariffs unless they are compensated appropriately, for instance by transfers. In this sense transfers from the rich to the poor... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Optimal tariffs; Optimal taxation; Policy coordination; Economic geography; Economic integration; Political Economy; F13; H21; F42; R12; F15. |
| Ano: 2002 |
URL: http://purl.umn.edu/26154 |
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