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: The economy fifty years since martial law: changing landscapes, unchanged views Abstract: The five decades that have passed since Marcos declared martial law is an opportunity for stocktaking relative to the present. This piece is a summary comparison of the character of the economy that existed under the Marcos regime and the current structure and problems experienced by the post-millennial economy. The stark differences described are unfortunately still not fully reflected in current economic discussions, a good part of which is still preoccupied with issues pertaining to a vanishing past. This prevents the country from confronting its real problems and exploiting new opportunities. Length: 17 pages Creation-Date: 2022-03 Publication-Status: Published as UPSE Discussion Paper No. 2022-01, March 2022 File-URL: https://econ.upd.edu.ph/dp/index.php/dp/article/view/1545/ File-Format: Application/pdf Number: 202201 Classification-JEL: N15, O53 Keywords: martial law; Marcos; services economy; business-process outsourcing; overseas remittances; Philippine development strategies; protectionism and liberalisation Handle: RePEc:phs:dpaper:202201 Template-Type: ReDIF-Paper 1.0 Author-Name: Renato E. Reside, Jr. Author-Name-First: Renato Jr. Author-Name-Last: Reside Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Real Options: A Review of Select Theories and Applications Abstract: This paper is an introduction to the concepts and methods used in the field of real options as they relate to investments. The analog between financial and real options is explained. The discrete version of a model is introduced, then solutions to the canonical model in continuous time using dynamic programming and contingent claims analysis are discussed. Finally, the paper covers extensions of the canonical model to various other option structures. Length: 32 pages Creation-Date: 2022-07 Publication-Status: Published as UPSE Discussion Paper No. 2022-02, July 2022 File-URL: https://econ.upd.edu.ph/dp/index.php/dp/article/view/1546 File-Format: Application/pdf Number: 202202 Classification-JEL: E2, E22, G11, G31 Keywords: Real options analysis; Investment theory Handle: RePEc:phs:dpaper:202202 Template-Type: ReDIF-Paper 1.0 Author-Name: Renato E. Reside, Jr. Author-Name-First: Renato Jr. Author-Name-Last: Reside Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Digital Services Taxes: Multilateral and Unilateral Efforts and an Overview of Recent Economic Models Abstract: This paper aims to describe the state of multilateral and unilateral efforts to tax digital services; summarize the state of economic analysis on digital services taxes; and provide an overview of where the Philippines stands in relation to other countries in digital service taxation. On-going efforts by other countries on digital taxation may have an impact on tax structure in the Philippines. The Philippines is currently drafting a law imposing VAT on these services, which is overdue and which may still be refined in some ways, but rationales exist as well for proposing other digital service taxes (DSTs), especially on revenue streams of large nonresident digital platforms. To do this, the country must update its tax laws further to account for the peculiarities of digital businesses. Economic models that explore the impact and incidence of DSTs are in nascent stages of development, but offer good insight for policymakers. The key is to recognize that digital platforms are 2-sided markets. In such markets, users on one side of the market can create value for participants on the other side. Digital platforms can capitalize on network externalities created by both sides (for instance, among users and advertisers) as well as scale economies and earn location-specific rents, which is one basis for DST taxation. Given these traits of 2-sided digital markets, traditional outcomes of taxation in one-sided market models may not apply. The paper ends by discussing open and partially addressed policy questions that need to be resolved soon. Length: 31 pages Creation-Date: 2022-08 Publication-Status: Published as UPSE Discussion Paper No. 2022-03, August 2022 File-URL: https://econ.upd.edu.ph/dp/index.php/dp/article/view/1547 File-Format: Application/pdf Number: 202203 Classification-JEL: H2, H22, K34 Keywords: Digital service taxation; two-sided markets; taxation; tax law Handle: RePEc:phs:dpaper:202203 Template-Type: ReDIF-Paper 1.0 Author-Name: Toby C. Monsod Author-Name-First: Toby Author-Name-Last: Monsod Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: The National Climate Budget and the First Nationally Determined Contribution to the Paris Agreement: To what degree are they aligned? Abstract: This paper explores whether and how well the Philippines’ Nationally Determined Contribution (NDC) and National Climate Budget (NCB), derived from the national climate change expenditure tagging system (CCET), are aligned. The CCET was operationalized in 2015 to “provide line and oversight agencies with the means to plan, prioritize and monitor the national climate change response allocation and performance”, with reference to the outputs and outcomes outlined in the National Climate Change Action Plan 2011-2028 (NCCAP). It finds that the share of climate change expenditures in the primary budget has not been higher than 9 percent and 12 percent, with and without personnel services respectively, undermining the claim that a whole-of-government approach to climate change has been adopted. It also finds that the links between the National Climate Budget and the NDC are tenuous: while the handful of unconditional programs and measures under the latter are supported by the former, the former is populated by climate change adaptation expenditures which are not yet accounted for in the latter but which are likely to have significant mitigation co-benefits. More fundamentally, there are a number of budget items in at least two key departments that are not tagged as CCEs, confirming that departments have a long way to go before the reality and requirements of climate change are properly embedded in planning and budgeting frameworks. One place to start to better integrate the NCCAP is to reformulate agency-level Sector Outcomes, Organizational Outcomes and Performance Indicators (found in Volume II of the GAA) so that these are explicitly climate-aligned. Length: 24 pages Creation-Date: 2022-09 Publication-Status: Published as UPSE Discussion Paper No. 2022-04, September 2022 File-URL: https://econ.upd.edu.ph/dp/index.php/dp/article/view/1548 File-Format: Application/pdf Number: 202204 Classification-JEL: Q54, Q58, Q01, O20, O53 Keywords: climate change; climate change expenditure tagging system; Nationally Determined Contribution; National Climate Budget; climate-aligned sustainable developmen Handle: RePEc:phs:dpaper:202204