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: Political Economic of Liberalizing Foreign Trade : Philippine Experiences Abstract: The Philippines has a long history of liberalization experiences. They span a wide range of policy direction from a regime of full decontrol to a mixture of restrictions and free trade. Perhaps this explains why the country has not been able to hold on to a trade direction that has been sustained on a long-term basis. Four liberalization episodes have been described in this paper not in terms of the technical character of the trade sectors but of the processes that when into their evolution and their eventual fallout. Several forces are identified as impinging on these processes: the overall political ethos; the Executive and Legislative branches of government; the bureaucracy; external forces of the IMF and the World Bank, among others; various vested interest groups; and coalitions among them. These forces have marshalled a variety of tactics to pursue their causes from lobbying to exaggerating the extent of injury to the economy from liberalization drives. The argument of this paper is really to suggest that liberalizing foreign trade be immediate given the political economy of it, which would attempt at delay or postponement. If there has to be a protracted timetable, such should not be long enough for political forces to mount a resistance. In a transition from import-substitution to export orientation and freer trade, immediacy is even more critical since vested are more powerful. In a transition from a closed economy to an open outward looking regime, immediate liberalization is also argued both to prevent the emergence of strong vested interests and organized resistance, and to send an unmistakable signal of commitment. In fact, other than possible opposition from the bureaucracy and state-operated-enterprises there would hardly be any opposition to a liberalization drive by the party-in-power itself. Of course, it goes without saying that accompanying reforms and other policy measures are equally important and pursued in tandem with trade liberalization. This would include some economic growth, institutional support for industries of comparative advantage, among others. Creation-Date: 1993-01 Publication-Status: Published as UPSE Discussion Paper No.1993-01, January 1993 Number: 199301 Handle: RePEc:phs:dpaper:199301 Template-Type: ReDIF-Paper 1.0 Author-Name: Jose Encarnacion, Jr. Author-Name-First: Jose, Jr. Author-Name-Last: Encarnacion Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Optimum Quantity of Money Instability Abstract: It is shown that optimum quantity of money equilibria are unstable in the simplest models. Getting back to the desired path requires a temporar y suspension of the money growth rule. Creation-Date: 1993-02 Publication-Status: Published as UPSE Discussion Paper No.1993-02, February 1993 Number: 199302 Handle: RePEc:phs:dpaper:199302 Template-Type: ReDIF-Paper 1.0 Author-Name: Emmanuel F. Esguerra Author-Name-First: Emmanuel Author-Name-Last: Esguerra Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: From Trader to Lender: Intelinked Contracts from a Credit Market Perspective Abstract: This paper addresses the implication of credit tying as a collateral substitute on the pattern of credit allocation in a rural financial market. Given that different lenders employ different forms of market interlinkage (e.g. labor-credit, land-credit, output-credit) or none at all, a key argument is that informal creditors differ in their abilities to deal with information and enforcement problems in the credit market. Consequently, informal lenders transact only with specific segments of the rural borrowing population about whom they are relatively well-informed and with whom they are capable of enforcing repayment. This suggests that policy interventions which treat the informal credit market as if it were an undifferentiated whole may be missing their mark. Creation-Date: 1993-03 Publication-Status: Published as UPSE Discussion Paper No.1993-03, March 1993 Number: 199303 Handle: RePEc:phs:dpaper:199303 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: Rural Performance and Agricultural Growth: A Philippine Perspective Abstract: Usual indicators of intertemporal rural performance are technically flawed mainly because of the shifting of the physical area of the rural sector as population grows and/or economic activity expands. The problem is illustrated using Philippine poverty data. The paper also shows that the rural poverty in the Philippines was substantially unaffected by the rapid agricultural growth during the green revolution period. Both demand and supply considerations constrained the responses of the rural sector to the stimulus provided by rapid agricultural growth. Creation-Date: 1993-04 Publication-Status: Published as UPSE Discussion Paper No.1993-04, April 1994 Number: 199304 Handle: RePEc:phs:dpaper:199304 Template-Type: ReDIF-Paper 1.0 Author-Name: Jose Encarnacion, Jr. Author-Name-First: Jose, Jr. Author-Name-Last: Encarnacion Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: On Keynes Aggregate Supply Function Abstract: The usual interpretation of Keynes aggregate supply function is that it is based on the ordinary supply function where the output supplied is a function of price such that its marginal costs is equated to price. In this paper it is argued that Keynes concept is based on Marshalls supply function where the supply price is a function of quantity and the supply price is average cost including normal profit. Creation-Date: 1993-05 Publication-Status: Published as UPSE Discussion Paper No.1993-05, May 1993 Number: 1993-05 Handle: RePEc:phs:dpaper:199305 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: Rent Intensity and Indirectly Endogenous Rent Abstract: Consider rent sourced from the value-added generated by productive investments. The amount dedicated to the pursuit of rent affects the aggregate value added and the size of rent itself, i.e. endogenous rent. We introduce rent intensity as the analytic tool and characterize it by relating it to the Tullock dissipation rate under specific assumptions on rent structure, risk attitude and membership size in the symmetric Cournot-Nash equilibrium. Among others we show that with proportionally endogeneous rent, with risk aversion of non-Inada variety, complete indifference and dissipation are not attainable. Creation-Date: 1993-06 Publication-Status: Published as UPSE Discussion Paper No.1993-06, June 1993 Number: 199306 Handle: RePEc:phs:dpaper:199306 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: Rent Intensity and Economic Performance Abstract: Using the share society as a metaphor for the economic system, we construct a microfoundation for stylized observations about rent seeking and economic performance. We introduce the concept of rent intensity and show that a symmetric Cournot-Nash equilibrium it falls as value-adding productivity rises, rises with rent seeking reward and with number of participants. A rudimentary dynamic counterpart is constructed which delivers progressive impoverishment as population grows. Creation-Date: 1993-07 Publication-Status: Published as UPSE Discussion Paper No.1993-07, July 1993 Number: 199307 Handle: RePEc:phs:dpaper:199307 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: On Q-Matrices and the Boundedness of Solutions to Linear Complementarity Problems Abstract: This paper is concerned with the existence and boundedness of the solutions to the linear complementarity problem w = Mz + q, w ≥ 0, z ≥ 0, wTz = 0, for each q є Rn. It has been previously established that if M is copositive plus, then the solution set is nonempty and bounded for each q є Rn iff M is a Q-matrix. This result is shown to be valid also for L2-matrices, Po-matrices, nonnegative matrices and Z-matrices. Creation-Date: 1993-08 Publication-Status: Published as UPSE Discussion Paper No.1993-08, August 1993 Number: 199308 Handle: RePEc:phs:dpaper:199308