Template-Type: ReDIF-Paper 1.0 Author-Name: Casimiro Miranda, Jr. Author-Name-First: Casimiro Author-Name-Last: Miranda, Jr. Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Criteria for the Regional Allocation of Public Resources Abstract: Based on a spatial development policy objective of continuous regional growth to reduce interregional gap and unemployment, the paper develops simple criteria for the regional allocation of public resources for development from a regional growth model that uses the well-known Harrod-Domar growth equation as extended by a neoclassical production function. Creation-Date: 1989-01 Publication-Status: Published as UPSE Discussion Paper No. DP 1989-01, January 1989 Number: 198901 Handle: RePEc:phs:dpaper:198901 Template-Type: ReDIF-Paper 1.0 Author-Name: Emmanuel S. de Dios Author-Name-First: Emmanuel Author-Name-Last: de Dios Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: A Note on an Antinony in Comparative Advantage Abstract: This note points out that the pattern of trade predicted by the comparative advantage may or may not hold, depending on the initial distribution of endowments. A necessary and sufficient condition for the “perverse?case to occur in a pure-exchange economy is that the education in the value of consumption on the part of those who lose from trade exceed the increase in the value of consumption on the part of those who gain, where the evaluation is carried out at autarky prices. Examples are then presented which illustrate that the "antinomy" may occur even when there are only two goods and both are normal. The question then raised is whether the principles of comparative advantage can really be regarded as a purely positive proposition. Creation-Date: 1989-02 Publication-Status: Published as UPSE Discussion Paper No. 1989-02, February 1989 Number: 198902 Handle: RePEc:phs:dpaper:198902 Template-Type: ReDIF-Paper 1.0 Author-Name: Manuel F. Montes Author-Name-First: Manuel Author-Name-Last: Montes Title: The Effect of Ricardian Rent on Macroeconomic Performance Abstract: A macroeconomic, instead of microeconomic, analysis of the role of rent carried out in this study. In the sphere of production, a Ricardian process of rent generation, as formalized by Pasinetti, is utilized. Rent extraction induces supply-side declines. Attemps to overcome economic slowdown through Keynesian-type demand inducement brings the economy closer to its foreign exchange constraint. Creation-Date: 1989-03 Publication-Status: Published as UPSE Discussion Paper No. 1989-03, March 1989 Number: 198903 Handle: RePEc:phs:dpaper:198903 Template-Type: ReDIF-Paper 1.0 Author-Name: Elizabeth S. Tan Author-Name-First: Elizabeth Author-Name-Last: Tan Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: The Industrial Structure and Recent Reforms in Shanghai Abstract: The industrial structure of Shanghai is predominantly dominated by the state; with the advent of reforms, collectives and other forms of organization have partly displaced the State's role. The objective of industrial reform is an improvement in economic efficiency; nevertheless, it has brought about serious problems such as unequal income distribution. The question remain: how far should reform go and how should it be implemented? Creation-Date: 1989-04 Publication-Status: Published as UPSE Discussion Paper No. 1989-04, April 1989 Number: 198904 Handle: RePEc:phs:dpaper:198904 Template-Type: ReDIF-Paper 1.0 Author-Name: Cayetano Paderanga, Jr. Author-Name-First: Cayetano Author-Name-Last: Paderanga, Jr. Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Employment in Philippine Development Abstract: This paper examines the employment effects of economic policies since World War II by analyzing data on output and employment and various studies on trade and industrial policies. It includes that Philippine output growth has been lower than selected neighbors and that this may be traced the countrys trade policies. It also finds that the during the post-war period, implicit factor substitution has gone against labor. Creation-Date: 1989-04 Publication-Status: Published as UPSE Discussion Paper No. 1989-05, April 1989 Number: 198905 Handle: RePEc:phs:dpaper:198905 Template-Type: ReDIF-Paper 1.0 Author-Name: Carlos C. Bautista Author-Name-First: Carlos Author-Name-Last: Bautista Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: A Short Note on Agricultural Credit and Policy Analysis Abstract: This paper sets rural financial market analysis within a macroeconomic framework. An agricultural credit demand model is constructed. A preliminary test of the model is conducted using restricted least squares. It is noted that the model can be used to generate supply parameters required for an agricultural multi-market model which may be helpful in making credit policy analysis. Creation-Date: 1989-05 Publication-Status: Published as UPSE Discussion Paper No. 1989-06, May 1989 Number: 198906 Handle: RePEc:phs:dpaper:198906 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: Principal and Agent in a Lexicographic Model Abstract: This paper formulates the principal-agent problem in a lexicographic arbitration framework. Applying a previous result, the solution satisfies four conditions similar to those of Nash (1950) and is the only solution that does so. Less risk aversion in the sense of this paper implies a riskier choice, and there is a rationale for the agent's fee to be a linear function of the monetary outcome. Creation-Date: 1989-06 Publication-Status: Published as UPSE Discussion Paper No. 1989-07, June 1989 Number: 198907 Handle: RePEc:phs:dpaper:198907 Template-Type: ReDIF-Paper 1.0 Author-Name: Rolando A. Danao Author-Name-First: Rolando Author-Name-Last: Danao Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Geometric Properties of Explicitly Quasiconcave Functions Abstract: Quasiconcave functions are characterized by the convexity of the upper level sets. It is natural to ask what additional properties are required to characterize explicitly quasiconcave functions, (which contain the strictly quasiconcave functions). We show that these additional properties can be expressed in terms of the properties of and relationship between the level set, the upper level set, the boundary and the profile of the upper level set. Creation-Date: 1989-07 Publication-Status: Published as UPSE Discussion Paper No. 1989-08, July 1989 Number: 198908 Handle: RePEc:phs:dpaper:198908 Template-Type: ReDIF-Paper 1.0 Author-Name: Arsenio M. Balisacan Author-Name-First: Arsenio Author-Name-Last: Balisacan Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: An Analysis of the Philippines Inter-Island Shipping Industry Abstract: The paper provides an economic assessment of the state of inter-island shipping in the Philippines, with emphasis on the efficiency implications of the industry's structure and the regulatory policies supporting the industry's organization. It is argued that the maze of regulatory policies governing inter-island shipping severely restricts competition in the provision of shipping services, promotes rent-seeking activities at the expense of the users of these services of the general public, and creates bottleneck in the movement of goods and people. Creation-Date: 1989-08 Publication-Status: Published as UPSE Discussion Paper No. 1989-09, August 1989 Number: 198909 Handle: RePEc:phs:dpaper:198909 Template-Type: ReDIF-Paper 1.0 Author-Name: Raul V. Fabella Author-Name-First: Raul Author-Name-Last: Fabella Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Price Uncertainty and Loan Repayment in-Kind Abstract: We show that the Pareto superiority of loan repayment in-kind within a tied credit arrangement to a cash-for-cash scheme under uncertain output price depends crucially on the farmer loan demand elasticity and his risk attitude. When demand is inelastic, risk aversion among farmers is required for Pareto superiority. We show that certain soft credit intervention initiatives may have output effects opposite to those intended. Creation-Date: 1989-08 Publication-Status: Published as UPSE Discussion Paper No. 1989-10, August 1989 Number: 198910 Handle: RePEc:phs:dpaper:198910 Template-Type: ReDIF-Paper 1.0 Author-Name: Mitsuo Ezaki Author-Name-First: Mitsuo Author-Name-Last: Ezaki Title: Oil Price Declines and Structural Adjustment Policies in Indonesia : A Static CGE Analysis for 1980 and 1985 Abstract: The purpose of this paper is to present a static CGE (Computable General Equilibrium) model of Indonesia constructed for the years 1980 and 1985, and to apply the model to the analysis of comparative statics by which the impacts of oil price declines are compared between the two years and the effects of structural adjustment policies are evaluated for the two cases of financial and tax reforms in 1983. The model has two important characteristics. First, it integrates real and financial sectors in a consistent way. Second, it determines the exchange rate endogenously, covering both fixed and flexible exchange rate systems. The model has been applied to the analysis of comparative statics in the case of 10% decline in oil price for both years (1980 and 1985) independently and in a comparable way. In other words, comparisons of comparative statics have been attempted based on the model. A notable outcome from the comparisons is the fact that negative impacts of the 10% oil price decline are fairly smaller in 1985 than in 1980. This means that there should have occurred some structural changes or structural adjustments in the Indonesian economy between the two years to mitigate negative effects of the ‘reverse oil shock?which began in March 1983. Actually, two major policy reforms were introduced in 1983 to cope with the reverse oil shock, aiming at a full mobilization of domestic resources. One was financial reform, and the other was the tax reform. Comparative statics based on the model clearly indicates that the two policy reforms, especially the financial reform, contributed significantly to the mitigation of negative effects caused by the reverse oil shock. Creation-Date: 1989-09 Publication-Status: Published as UPSE Discussion Paper No. 1989-11, September 1989 Number: 198911 Handle: RePEc:phs:dpaper:198911 Template-Type: ReDIF-Paper 1.0 Author-Name: Edita A. Tan Author-Name-First: Edita Author-Name-Last: Tan Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Life Cycle of Health, Productivity and Consumption Abstract: The analysis draws attention to the whole life cycle relationship between health, labor productivity and utility function. Man's health-biological (HB) cycle is inverted U-shaped. It has the obvious growth or upward sloping segment and a declining segment. The peak is considered to be the maximum achievable biological development. The height and slope are determined by nutrition, quality of environment and habits. They vary depending on the degree of deprivation of health inputs. Some evidence from medical research is presented in support of likely HB cycles. The HB status at each age determines in turn, mental and physical capacity for work. Likewise it determines the utility function or time preference and current demand for goods and leisure. The paper focuses on labor productivity which is a result of the interaction between the capacity supplied by labor and the capacity required by jobs. Poverty is seen to pull down capacity supply and underdeveloped processes to raise capacity requirement. The gap would tend to result in low productivity. Concurrent and life cycle productivity behavior is clarified. Creation-Date: 1989-10 Publication-Status: Published as UPSE Discussion Paper No. 1989-12, October 1989 Number: 198912 Handle: RePEc:phs:dpaper:198912 Template-Type: ReDIF-Paper 1.0 Author-Name: Mitsuo Ezaki Author-Name-First: Mitsuo Author-Name-Last: Ezaki Title: Economic Development of ASEAN Countries and their Prospects for NIC Status Abstract: The paper attempts, first, to make an overview of the economic development of Indonesia, Malaysia, the Philippines, and Thailand in the postwar period (especially since the 1960’s) from both macro and industry levels and, then, to investigate their prospects of attaining the status of NICs (Newly Industrializing Countries) in the near future. The latter topic discussed in the light of the concepts of NICs employed by OECD and B. Balassa around 1980. Tables 6 and 7 provide the corresponding data which are comparable across countries over time. Creation-Date: 1989-11 Publication-Status: Published as UPSE Discussion Paper No. 1989-13, November 1989 Number: 198913 Handle: RePEc:phs:dpaper:198913 Template-Type: ReDIF-Paper 1.0 Author-Name: Cayetano Paderanga, Jr. Author-Name-First: Cayetano Author-Name-Last: Paderanga, Jr. Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Tertiary Education in the Philippines : Individual Rationality and Social Myopia Abstract: This paper analyzes the phenomena of large volumes of college enrolment, educated unemployment and “job mismatch”. It reviews the structure of tertiary education in the Philippines, the investment behavior in schooling by individual households and the labor market in the Philippines. It concludes that the high rates of educated unemployment and job mismatch results from the expected response of household investment behaviour to the dualistic structure of the labor-market. The solution to the problems, therefore, are to be found in industrial rather than education policy. Creation-Date: 1989-11 Publication-Status: Published as UPSE Discussion Paper No. 1989-14, November 1989 Number: 198914 Handle: RePEc:phs:dpaper:198914 Template-Type: ReDIF-Paper 1.0 Author-Name: Edita A. Tan Author-Name-First: Edita Author-Name-Last: Tan Title: Bank Concentration and the Structure of Interest Abstract: The Philippine financial system has failed to develop over the last three decades. M3/GNP ratio has not risen but has merely fluctuated around 22-25 percent. Wrong policies are blamed for the poor performance of the system. The current interest rate structure shows extremely wide differentials between saving and time deposit rates and between saving deposit and loan rates. The paper tries to explain these by the policies adopted by the Central Bank, especially those restricting bank entry and imposing high intermediation taxes. The paper analyzes how the policies effectively repress intermediation activities and result in high profits and intermediation cost. The effects of the current policies are compared to the effects of the more traditional forms of repression followed earlier, i.e., 1960 to 1980. Creation-Date: 1989-12 Publication-Status: Published as UPSE Discussion Paper No. 1989-15, December 1989 Number: 198915 Handle: RePEc:phs:dpaper:198915 Template-Type: ReDIF-Paper 1.0 Author-Name: Solita C. Monsod Author-Name-First: Solita Author-Name-Last: Monsod Title: Debt or Development : Philippine Imperatives and The Conventional Strategy for Debt Management Abstract: Conventional debt strategy claims to be growth oriented. This paper argues however that effectively, growth is treated as a residual after debt service requirements are met. This is borne out by results of Philippine negotiations with the IMF in 1986 and 1988. Owing to this, the prospects for achieving the countrys development targets over the medium-term are dim. Current debt conversion schemes and the Philippine Assistance Plan may bring only negligible benefits to the country at best. Creation-Date: 1989-12 Publication-Status: Published as UPSE Discussion Paper No. 1989-16, December 1989 Number: 198916 Handle: RePEc:phs:dpaper:198916 Template-Type: ReDIF-Paper 1.0 Author-Name: Fidelina B. Natividad Author-Name-First: Fidelina Author-Name-Last: Natividad Title: Monetary Policy, Fiscal Policy and Sterilized Intervention in a Model of Exchange Rate and Aggregate-Demand Dynamics Abstract: This paper incorporates a fully-sterilized intervention policy and imperfect capital substitutability into a model characterized by sluggish agragate demand, sticky prices, and rational expectations. It shows that intervention may eliminate overshooting resulting from monetary expansion but may only dampen overshooting resulting from fiscal expansion. Creation-Date: 1989-12 Publication-Status: Published as UPSE Discussion Paper No. 1989-17, December 1989 Number: 198917 Handle: RePEc:phs:dpaper:198917 Template-Type: ReDIF-Paper 1.0 Author-Name: Ramon A. Clarete Author-Name-First: Ramon Author-Name-Last: Clarete Title: Special and Differential Treatment of Developing Countries in the Uruguay Round Agricultural Negotiations Abstract: This paper argues that the Uruguay Roung (UR) negotiators should not compel developing countries to liberalize their respective agricultural sectors because their non-agricultural manufacturing sectors remain protected. One-sided agricultural liberalization is inconsistent with promoting agricultural development, encourages rural-urban migration, and unnecessarily constrains agricultural policy movement and planning. Thus, special rules should apply for developing countries. In developing the argument, the paper traces the evolution of special and differential treatment for developing countries in the GATT and discusses some of the critical issues in the UR agricultural negotiations. The paper also argues that a mechanism for reviewing invocations by developing countries of the principle of S $ D should be agreed upon and decided by the UR negotiators. In the interest of agricultural development, all developing countries should be accorded special measures in order to develop. Such measures applied on a per product basis may be questioned by any/contracting party before a possible GATT committee that would be tasked to deal with agricultural S&D complaints, with the power to decide whether the product-specific agricultural development measures under question are legitimate. Creation-Date: 1989-12 Publication-Status: Published as UPSE Discussion Paper No. 1989-19, December 1989 Number: 198918 Handle: RePEc:phs:dpaper:198918 Template-Type: ReDIF-Paper 1.0 Author-Name: Carlos C. Bautista Author-Name-First: Carlos Author-Name-Last: Bautista Title: An Annual Macroeconometric Model of the Philippines Abstract: This paper presents the estimation and dynamic historical simulation results of a demand-driven macro model of the Philippines. The model covers the period 1967 to 1988 using annual data. The model has four main parts. A core model describes the real behavior of the economy while three sub-blocks represent the balance of payments (BOP), the government and the monetary accounts. The IS-LM framework is modified to include the portfolio balance approach to exchange rate determination. The first section makes an introduction. The second section gives a rough sketch of the main theoretical basis of the model. The last section shows the estimation and historical simulation results and the simulation statistics. Creation-Date: 1989-12 Publication-Status: Published as UPSE Discussion Paper No. 1989-19, December 1989 Number: 198919 Handle: RePEc:phs:dpaper:198919