Template-Type: ReDIF-Paper 1.0 Author-Name: Jose Encarnacion, Jr. Author-Name-First: Jose Author-Name-Last: Encarnacion, Jr. Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Relative Contributions of Mixed Variables to the Variation of a Regressand Abstract: This note shows the direct comparability of the beta coefficients of ordinary scalar variables and of classificatory vector variables. Accordingly, even when both kinds of variables appear in a regression equation, their relative contributions to the variation of the regressand can be ranked by their beta squares. Creation-Date: 1981-01 Publication-Status: Published as UPSE Discussion Paper No. DP 1981-01, January 1981 Number: 198101 Handle: RePEc:phs:dpaper:198101 Template-Type: ReDIF-Paper 1.0 Author-Name: Nilda D. Vasquez Author-Name-First: Nilda Author-Name-Last: Vasquez Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: The Corporate Income Tax : Its Distributive Implications on Individual Shareholders Abstract: Under the present system of income taxation in the Philippines, there is a differential burden created by the corporate income tax on shareholders' incomes vis-a-vis other types of personal income. Corollarily, within the corporate sector, a built-in incentive exists in favor of debt finance, but the role of this factor in the corporate choice between equity and debt finance has not been empirically established. Another major equity issue is the regressivity of the differential burden of the corporate tax among shareholders. This extra burden may eventually turn into a tax shelter for high-income taxpayers, creating a strong inducement for tax avoidance by capitalizing on the corporate device through retention of corporate profits. The proposed 20 percent final tax on dividends, which is part of the gross income package proposed under Cabinet Bill No. 34, is a tax in rem and will intensify the existing regressivity. Creation-Date: 1981-02 Publication-Status: Published as UPSE Discussion Paper No. 1981-02, February 1981 Number: 198102 Handle: RePEc:phs:dpaper:198102 Template-Type: ReDIF-Paper 1.0 Author-Name: Jose Encarnacion, Jr. Author-Name-First: Jose Author-Name-Last: Encarnacion, Jr. Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: The Lexicographic Consumer Theory Abstract: This paper develops some implications of consumer choice when preferences are lexicographic, by formulating the consumer's choice as a nonlinear programming problem. Under certain conditions, it turns out that some familiar results of standard consumer theory (including the Slutsky equation) have analogues under lexicographic choice. It is suggested that quality variations--where some goods in the consumer's market basket are replaced by similar goods of different quality--find an easier explanation with vector-valued utility. Creation-Date: 1981-03 Publication-Status: Published as UPSE Discussion Paper No. 1981-03, March 1981 Number: 198103 Handle: RePEc:phs:dpaper:198103 Template-Type: ReDIF-Paper 1.0 Author-Name: Ernesto M. Pernia Author-Name-First: Ernesto Author-Name-Last: Pernia Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Asian Urbanization and Development : A Comparative Analysis Abstract: A comparative perspective on Asian urbanization and development is offered in this paper. In this first part, some aspects of urbanization and spatial concentration are discussed using data on South, Southeast, East and Centrally Planned Asian countries. South and Southeast (and some extent Centrally Planned) Asian countries have been experiencing slow urbanization but rapid urban and rural population growth; the reverse is true for East Asian countries. In the second part, an expanded urbanization-development model is proposed and then tested empirically. The results show that, in addition to manufacturing and agricultural growth, population growth plays a crucial role but this is to slow down the urbanization process. Agricultural development also appears to retard urbanization, perhaps because it allows for absorption of labor, lending further support to the notion that rural development can reduce unwarranted migration to cities. Another noteworthy finding is that openness of the economy, besides manufacturing activity, is a significant determinant of concentration in the metropolis. Apparently, concentration is a response to the need to be near the principal port as well as to offices that issue import licenses and foreign exchange, among other things. Thus, spatial concentration seems to be partly an unintended consequence of economic policies, salient among which was the import-substitution industrialization strategy in the past. Creation-Date: 1981-04 Publication-Status: Published as UPSE Discussion Paper No. 1981-04, April 1981 Number: 198104 Handle: RePEc:phs:dpaper:198104 Template-Type: ReDIF-Paper 1.0 Author-Name: Rosa Linda P. Tidalgo Author-Name-First: Rosa Linda Author-Name-Last: Tidalgo Author-Name: Virginia A. Teodosio Author-Name-First: Virginia Author-Name-Last: Teodosio Title: Youth Employment in the Philippines Abstract: This study examines the extent and nature of children and youth employment in the Philippines during the 1960s and the 1970s. Countries like the Philippines are in transition from a subsistence agrarian economy to industrial capitalism. Viewed in this perspective, the role of children in production becomes primarily a function of the existing mode of production. As work takes place away from the home involving other non-family members, the sharing of the total output is likely to be detached from the major consideration of the needs of those who contribute to the production. Unorganized, easily intimidated and exploited, children with hardly any bargaining power can be a source of cheap labor. The literature on child and youth employment in the Philippines cites the poor working conditions of child labor such as their low wages, long hours of work and poor work surroundings. The study describes the labor force participation, employment characteristics and educational background of the 10-14 year olds during the period 1961 to 1976. It also includes a case study of a sample of firms, apprentices and their parents/guardians in Metro Manila in 1979 which establishes basically the same work pattern characterized by low wages and poor working conditions of working minors, as described by earlier studies. A review to the evolution of legislation concerning the employment of children and the youth show that in 50 years, from the 1920s to 1970s, the legislation that took shape emerged to be most comprehensive and adequate. The problem lies in the grossly inadequate enforcement of these laws protecting minors implying therefore the great possibility of rampant abuses and exploitation of the working youth. The paper ends with a set of recommendations to promote child and youth welfare which gives emphasis on the great potential of government intervention towards: 1) economic development that leads to more equitable income distribution since children work primarily because of poverty; 2) providing educational opportunities to children; 3) strengthening the apprenticeship and learnership programs; 4) the serious enforcement of laws protecting working minors; and 5) influencing labor unions to take on guardianship of working minors. Creation-Date: 1981-04 Publication-Status: Published as UPSE Discussion Paper No. 1981-05, April 1981 Number: 198105 Handle: RePEc:phs:dpaper:198105 Template-Type: ReDIF-Paper 1.0 Author-Name: Charles W. Lindsey Author-Name-First: Charles Author-Name-Last: Lindsey Title: The Development Contibution of Multinational Firms in the Philippines : A Summary of A Survey of 28 Firms Creation-Date: 1981-05 Publication-Status: Published as UPSE Discussion Paper No. 1981-06, May 1981 Number: 198106 Handle: RePEc:phs:dpaper:198106 Template-Type: ReDIF-Paper 1.0 Author-Name: Rolando A. Danao Author-Name-First: Rolando Author-Name-Last: Danao Title: On the Use of Linear Programming for Family Planning Resource Allocation Abstract: Implementable linear programming models have been developed for the allocation of family planning resources in developing countries. These models minimize births over a planning horizon subject to resource constraints. This choice of the objective function leads to nonpositive shadow prices, which are not intuitively appealing. Moreover, the dual problem underestimates the number of averted births resulting in an overestimate of the cost per averted birth. By viewing family planning as a production problem with averted births as output, this paper suggests that maximization of averted births is a more natural choice for an objective function. The primal problem then gives the number of averted births accurately while the dual problem gives nonnegatives shadow prices whose interpretation (e.g. averted births per money unit) is straightforward. Furthermore, this objective function dispenses with noncontraception variables and accounting identities thus reducing the size of the model. Creation-Date: 1981-06 Publication-Status: Published as UPSE Discussion Paper No. 1981-07, June 1981 Number: 198107 Handle: RePEc:phs:dpaper:198107 Template-Type: ReDIF-Paper 1.0 Author-Name: Jose Encarnacion, Jr. Author-Name-First: Jose Author-Name-Last: Encarnacion, Jr. Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: A Lexicographic Arbitration Model Abstract: Assuming that the parties to a conflict have lexicographic preferences, an arbitration model is formulated whose proposed solution satisfies five reasonable conditions. Four of these conditions are analogous to the four conditions that characterize the Nash solution to the bargaining problem. The fifth condition, called "nonfavoritism", is new. It turns out that if any possible solution is required to satisfy the five conditions, it can only be the proposed solution. Creation-Date: 1981-07 Publication-Status: Published as UPSE Discussion Paper No. 1981-08, July 1981 Number: 198108 Handle: RePEc:phs:dpaper:198108 Template-Type: ReDIF-Paper 1.0 Author-Name: Chita Tanchoco-Subido Author-Name-First: Chita Author-Name-Last: Tanchoco-Subido Title: Is Agricultural Loan Deliquency Inevitable? Creation-Date: 1981-08 Publication-Status: Published as UPSE Discussion Paper No. 1981-09, August 1981 Number: 198109 Handle: RePEc:phs:dpaper:198109 Template-Type: ReDIF-Paper 1.0 Author-Name: Chita Tanchoco-Subido Author-Name-First: Chita Author-Name-Last: Tanchoco-Subido Title: What's Wrong (or Right) About Our Credit Policies? Creation-Date: 1981-10 Publication-Status: Published as UPSE Discussion Paper No. 1981-10, October 1981 Number: 198110 Handle: RePEc:phs:dpaper:198110 Template-Type: ReDIF-Paper 1.0 Author-Name: Chita Tanchoco-Subido Author-Name-First: Chita Author-Name-Last: Tanchoco-Subido Title: Rural Savings Behavior Creation-Date: 1981-11 Publication-Status: Published as UPSE Discussion Paper No. 1981-11, November 1981 Number: 198111 Handle: RePEc:phs:dpaper:198111 Template-Type: ReDIF-Paper 1.0 Author-Name: Hal Hill Author-Name-First: Hal Author-Name-Last: Hill Title: Subcontracting and Technological Deffusion in the Philippine Manufacturing Abstract: Policy-makers in developing countries, long frustrated with the difficulties, encountered in programs to foster small-scale industry, are giving increased attention to the scope that exist for large firms to assist in the development of small firms. In spite of the large literature on Japan, the nature and extent of inter-firm linkages in developing countries is a relatively unexplored field. This paper present a preliminary analysis in subcontracting in the Philippine appliance and motorcycle industries based on a recent survey of firms in the industries. Local content in these industries rose significantly in the 1970s, partly as a result of government policies, but inter-firm linkages remain very weak, and large firms play a minor role in upgrading the technical and managerial capacity of smaller firms. This situation is likely to remain unless there are some fundamental changes in the industries. Government attempts to promote subcontracting in themselves are unlikely to contribute to a significant strengthening on inter-firms linkages. Creation-Date: 1981-12 Publication-Status: Published as UPSE Discussion Paper No. 1981-12, December 1981 Number: 198112 Handle: RePEc:phs:dpaper:198112 Template-Type: ReDIF-Paper 1.0 Author-Name: Florian A. Alburo Author-Name-First: Florian Author-Name-Last: Alburo Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Some Aspects of Japanese Investments in the Philippines Abstract: The paper describes the pattern of Japanese private investment in the Philippines, reviews the analytical aspects of private foreign investment in general and how Japanese investment fit in that framework and suggest directions for policy and research analysis. Philippine exposure to Japanese investments is slight though not insignificant compared with the rest of the ASEAN countries and in terms of growth rates in the seventies. There has been a noticeable surge however relative to the sixties. Japanese investments are analyzed (using available aggregate data) in terms of determinants and impact. It is shown that the behavior of Japanese investments in the Philippines follows the patterns in other empirical studies of foreign investments in general. The more important question in assessing investment is in regard to their replacement by indigenous capital and resources. This is likewise analyzed in the paper. Some implications are drawn with respect to investments policies and areas for further research. Creation-Date: 1981-12 Publication-Status: Published as UPSE Discussion Paper No. 1981-13, December 1981 Number: 198113 Handle: RePEc:phs:dpaper:198113 Template-Type: ReDIF-Paper 1.0 Author-Name: Manuel F. Montes Author-Name-First: Manuel Author-Name-Last: Montes Title: Are Money Balances An Inferior Asset?: Rational Expectations and the Household Demand for Money Abstract: The rational expectations hypothesis presents the challenge that estimates of permanent income should be calculated from the statistical expectation of such income. This study reports on basic research undertaken on this proposition as it applies to the demand for money, a relation generally considered to be a function of permanent income. Data on 735 households from a national sample of the U.S reveals that consumers reduce their demand deposits in response to an increase in lifetime wealth. The data also reveals that households do not exhibit money management behavior consistent with full information. Creation-Date: 1981-12 Publication-Status: Published as UPSE Discussion Paper No. 1981-14, December 1981 Number: 198114 Handle: RePEc:phs:dpaper:198114 Template-Type: ReDIF-Paper 1.0 Author-Name: Benjamin E. Diokno Author-Name-First: Benjamin Author-Name-Last: Diokno Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Local Public Enteprises in Developing Countries : Issues and Practices Abstract: Local governments in less developed countries (LDCs) are generally faced with the problem of inadequate fiscal resources, with much more severity than their counterparts in the more developed countries. There are a number of reasons for this state of affairs. In a country where there is widespread rural poverty and where the rural economy is predominantly agricultural, the tax bases are understandably quite limited. In addition, since the Central Governments of developing countries have, in many cases, preempted the major tax instruments, then local governments can only make claim on a minor potion of the already limited tax bases available to LDC governments. Furthermore, tax administration in developing countries is generally lacking because of the shortage of skilled administrators and manpower, and this shortcoming is more serious for LDC local governments Since the demand for the local public services are more likely to increase rather than decrease in the years ahead, this problem of inadequate fiscal resources and the difficulties of raising through taxation, suggests the need to develop other means of mobilizing resources for public purposes. One such alternative is the use of local public enterprises. The purpose of this paper is twofold: (a) to clarify the issues related to the potential use of local public enterprises for public sector resource mobilization; and (b) to draw together some of the fragmentary evidences we were able to assemble on the actual use of local public enterprises in some LDC local governments. Organizationally, the next section addresses the issue of the tenable range of local public enterprises in developing countries, with revenue mobilization as the explicit objective. The next section, Section III, discusses the state of the practice of public enterprises in some LDC local governments, with particular emphasis on the assignment of responsibility, financial performance, pricing policy, and disposition of surplus. Section IV concludes the paper. Creation-Date: 1981-12 Publication-Status: Published as UPSE Discussion Paper No. 1981-15, December 1981 Number: 198115 Handle: RePEc:phs:dpaper:198115