Template-Type: ReDIF-Paper 1.0 Author-Name: Michael M. Alba Author-Name-First: Michael Author-Name-Last: Alba Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Measuring the Effects of Schooling on Wages for a Young Sample from Rural Guatemala Abstract: In order to measure the intrinsic effect of schooling on wages for adolescents and young adults from four villages in rural Guatemala, this paper estimates different wage specifications that have been suggested in the human capital literature. Successively accounted for are potential sources of bias in the estimated coefficient of schooling, such as those arising from self-selectivity in the wage-earning sample and from the omission of innate ability, family background, and the quality of schooling from the set of wage determinants. The result show that when these potential sources of bias are treated, the rate of return to schooling is about 5.9 percent for the population of adolescents and young adults in these villages. Creation-Date: 1997-01 Publication-Status: Published as UPSE Discussion Paper No. 1997-01, January 1997 Number: 199701 Handle: RePEc:phs:dpaper:199701 Template-Type: ReDIF-Paper 1.0 Author-Name: Frank M. Little Author-Name-First: Frank Author-Name-Last: Little Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Technological Change as a Determinant of Economically Sustainable Growth: A Case Study of the Philippines Abstract: This paper outlines a private research program to be carried out under the aegis of the Faculty of Asian and International Studies, Griffith University, Queensland, Australia. The approach embodied in the program percieves economically sustainable growth as dependent upon transformations of production processes at the industry level;i.e. technological change. These transformations then permit the industries to absorb much greater quantities of factor inputs - especially capital embodying technical innovations - without any reduction in productivity, and it is this particular pattern of markedly increased factor employment which characterises sustainable growth. In order to determine whether current growth rates are likely to be sustained the research program aims at establishing a framework to assess to extent to which technological change has occured in the Philippines. It aims to do this by measuring the changes in the patterns of inputs over the period 1985 - 1994 using changes in the input-output tables over that period. By examining major new industry developments since 1994, assessment of the possible transformations since that date, will be made. Then by using the Philippines-Japanese International I-O table, some attemp will be made to gauge the extent to which the structure of the Philippines economy is moving towards that of Japan. Finally obvious major structural weaknesses highlighted by this comparison, will be outlined, with a view to formulating policies which may help to address those weaknesses. Creation-Date: 1997-02 Publication-Status: Published as UPSE Discussion Paper No. 1997-02, February 1997 Number: 199702 Handle: RePEc:phs:dpaper:199702 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: A Keynesian Model of Aggregate Demand and Supply Abstract: This paper defines an aggregate demand function based on portfolio balance with three assets (money, bond and equities) and an aggregate supply function derived from the supply behavior of a representative price-setting firm. The money wage is endogenous but the usual result is a short-period unemployment equilibrium. The model povides explanations of Phillips curve, stagflation and procyclical real wage phenomena. It also allows a continuum of full-employment equilibria. Creation-Date: 1997-03 Publication-Status: Published as UPSE Discussion Paper No. 1997-03, March 1997 Number: 199703 Handle: RePEc:phs:dpaper:199703 Template-Type: ReDIF-Paper 1.0 Author-Name: Jose Antonio Tan III Author-Name-First: Jose Antonio III Author-Name-Last: Tan Author-Name: Cayetano Paderanga Jr. Author-Name-First: Cayetano, Jr. Author-Name-Last: Paderanga Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: A Note on Philippine Financial Openness Abstract: In 1991, the Philippines launched a series of foreign exchange reforms which partially opened the capital account. These set of reforms, if completed, will result in the financial integration of the economy with the global financial markets, thus, would complete the sequence of economic liberalization and integration. This study examines the degree of financial integration of the Philippnes with the international economy. In particular, two questions are to be answered. First, how financially integrated is the Philippines with the rest of the world? And, second, how has foreign exchange liberalization contributed to Philippine financial openness? Philippine financial openness is examined using the gross capital flows ratio, the Feldstein-Horioka regressions and variations of test based on uncovered interest parity. While the results confirm the substantial increase in gross capital flows, evidence using investment-saving correlation and arbitrage tests suggest that the degree of financial openness is still low. The empirical evidence also suggests that capital account liberalization has not contributed much to financial integration. Creation-Date: 1997-04 Publication-Status: Published as UPSE Discussion Paper No. 1997-04, April 1997 Number: 199704 Handle: RePEc:phs:dpaper:199704 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: Growth and Equity in the Philippines Abstract: The paper reexamine the nature of the growth-poverty-inequality nexus in the Philippines during the second half of the 1980s and the first half of the 1990s. It gives new estimates of national and spatial poverty, assesses the relative contributions of growth and redistribution to the observed changes in poverty measures, and examines the determinants of regional poverty using a consistently assembled regional data set for the period. Among other things, it finds that, contrary to popular perception, the growth process in recent years and across regions of the country has not had strongly adverse impact on the position of the poor. Poverty responds elastically to growth, although the economy's ability to translate growth to poverty reduction appears weaker than for the "average" developing country. Creation-Date: 1997-05 Publication-Status: Published as UPSE Discussion Paper No. 1997-05, May 1997 Number: 199705 Handle: RePEc:phs:dpaper:199705 Template-Type: ReDIF-Paper 1.0 Author-Name: Casimiro V. Miranda Jr. Author-Name-First: Casimiro, Jr. Author-Name-Last: Miranda Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: A Theoretical Derivation of the Laffer Curve and the Effect of the Tax on Wage and Employment Abstract: The Laffer curve showing tax revenue as a function of the tax on the prevailing money wage is derived from the aggregate supply of labor function. Consequently, the possible trade-off between tax revenue and employment (or total output) is considered. Then the tax is shown to result in wage rigidity downward even under competitive condition. Some policy implications and relevant theoretical issues are noted. Creation-Date: 1997-06 Publication-Status: Published as UPSE Discussion Paper No. 1997-06, June 1997 Number: 199706 Handle: RePEc:phs:dpaper:199706 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: The Net Index of Protection and the Flight from Tradeable Sector Abstract: We propose the Net Index of Protection that subsumes the Balassa "Net Effective Protection Rate," Michaely's "Net Effective Protection Rate," and Corden's "pure exchange rate protection." Under special circumstances, this depends only on off-the-shelf indicators, the effective protection rate and the real exchange rate, to reflect the resource full among tradeables and between tradeables and nontradeables. We estimate NIP for Manufacturing and subsectors for the period 1991 to 1997 which suggests why domestic capital fled the tradeable sector. We finally derive the exchange rate adjustment required to restore the level of protection accorded sector j when tariffs are being reduced (the iso-protection tradeoff). Creation-Date: 1997-07 Publication-Status: Published as UPSE Discussion Paper No. 1997-07, July 1997 Number: 199707 Handle: RePEc:phs:dpaper:199707 Template-Type: ReDIF-Paper 1.0 Author-Name: Frank M. Little Author-Name-First: Frank Author-Name-Last: Little Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: The Relationship Between Technological Change and Economic Development Creation-Date: 1997-08 Publication-Status: Published as UPSE Discussion Paper No. 1997-08, August 1997 Number: 199708 Handle: RePEc:phs:dpaper:199708 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: Financial Liberalization, Saving Mobilization and Banking Innovations Creation-Date: 1997-09 Publication-Status: Published as UPSE Discussion Paper No. 1997-09, September 1997 Number: 199709 Handle: RePEc:phs:dpaper:199709 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: Globalization, Capital Flows and Macroeconomic Policy Issues Creation-Date: 1997-10 Publication-Status: Published as UPSE Discussion Paper No. 1997-10, October 1997 Number: 199710 Handle: RePEc:phs:dpaper:199710